RCOM may extend exclusivity agreement by few weeks

South African telecom giant MTN and Anil Ambani group firm RCOM, currently negotiating for an estimated USD 70-billion deal to combine the two entities, are mulling to extend the exclusive talk period beyond 8th July in the face of legal issues raised by Mukesh Ambani-led RIL. The two sides could soon announce an extension of 2-3 weeks to the 45-day exclusive talk period, in view of the apprehension among investors that has seen MTN shares plunging to a three month low and that of RCOM to the lowest in a year. MTN shares on Thursday fell about two percent to about 115 rand in Johannesburg, while that of RCOM plunged about seven percent to Rs 389.50 at Bombay Stock Exchange after hitting its 52-week low of Rs 381.05 earlier in the intra-day trade. While sources close to the development in said that RCOM and MTN are seeking to... [read full story]