India's Reliance Communications (RLCM.BO: Quote, Profile, Research) has offered to meet Reliance Industries (RELI.BO: Quote, Profile, Research), a source said a day before its period of exclusive talks with South Africa's MTN Group (MTNJ.J: Quote, Profile, Research) ends, which an analyst said may mean a deal has not been struck yet.
Reliance Industries, India's most valuable firm, has staked a right of first refusal on Reliance Communications' shares, but India's No. 2 mobile firm maintains that Reliance Industries' claims were untenable, a source close to the development said.
Reliance Communications was prepared to meet with Reliance Industries in the week of July 14 "to clarify any doubts", the source said, adding the meeting was not part of "conciliation" or "dispute resolution".
"Anil may be seeking more time to convince Mukesh," said Emeka Obiodu, senior telecoms analyst at Global Insight in London, referring to the chairman of Reliance Communications and his estranged brother, the chairman of Reliance Industries.
"But anything short of an unequivocal surrender of the purported first right of refusal by Mukesh will not be enough for MTN. The South Africans will not give up control of MTN to an uncertain future," he said.
A spokeswoman for Reliance Industries said they had no immediate response, and would respond shortly.
Reliance Communications, India's No. 2 mobile operator, began exclusive talks with MTN, sub-Saharan Africa's top mobile operator, in end-May. A deal would create a top-10 global telecoms firm with operations in about two dozen countries.
In June, Mukesh Ambani, who runs Reliance Industries and is the estranged older brother of Reliance Communications chairman Anil Ambani, had claimed a right of first refusal on Reliance Communications shares.
Shares in Reliance Communications ended Monday down 4.2 percent at 419.80 rupees in a Mumbai market that rose 0.5 percent. For more on the talks, see
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