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Posted : Thursday, July 3, 2008
NEW
YORK: Anil Ambani-led Reliance Communications and South African telecom giant
MTN may announce as early as this weekend an amalgamation deal, which would be
"worded" in a way aimed at averting any legal action, a media report said.
A deal between MTN and RCom
could be announced this weekend despite threats of legal action to block the
deal, the
Wall Street
Journal
said in a report in its online
edition today, quoting two unnamed people familiar with the situation.
"The deal will be worded in
such a way that it will likely avert a lawsuit from being filed. But, in any
case, (RCom and MTN) are prepared to move forward and deal with the Mukesh
Ambani challenge when and if it comes. Their lawyers are telling them it's an
acceptable risk to take," the report quoted one of the people saying.
The report added that the two
companies are "getting very close to announcing the deal. If there are no
last-minute disagreements, the announcement may come as early as Sunday or
sometime next week."
Separately, another report in
the British daily
Financial
Times
said RCom is tying up with some
global private equity and Middle-East sovereign funds for acquiring a majority
51 per cent stake in South African telecom major MTN, with an aim to thwart off
any possible legal challenge from elder brother Mukesh-led Reliance Industries.
"A consortium led by Indian
billionaire Anil Ambani is considering taking a majority stake in South African
mobile operator MTN to help stave off a potential legal challenge from his elder
brother, Mukesh Ambani, to the deal that has been under discussion," the report
said.
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