South Africa's MTN failes to reach deal with Reliance

21 Jul 2008
00:00

(Associated Press via NewsEdge) South Africa's MTN said it had failed to reach a deal in talks with India's Reliance Communications.

Reliance said in May it had entered into exclusive merger talks with MTN Group.

'Owing to certain legal and regulatory issues, the parties are unable to conclude a transaction,' MTN Group said in a statement posted on the web site of the Johannesburg Stock Exchange. 'Accordingly, it has been mutually decided to allow the exclusivity agreement to lapse.'

An MTN spokeswoman declined to comment beyond what was written in the statement.

Reliance is India's second-largest telecommunications company by subscribers. It had opened talks with MTN soon after another Indian company, Bharti Airtel, said it was ending negotiations with MTN because the South African company's proposals would have seen the Indian company becoming a subsidiary.

© 2008 The Associated Press

© 2008 Dialog, a Thomson business. All rights reserved

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