NEW DELHI: Ending the suspense over status of their talks for a possible amalgamation, Anil Ambani-led RCOM and South African Telecom major MTN on Wednesday announced extending their exclusive negotiations till July 21.
"RCOM and MTN have agreed to continue their negotiations in relation to such potential business combination, and have extended the period of exclusivity until July 21," RCOM said in a statement.
"It is to be noted that there is no certainty either on completion, or the timing of the said proposal," the statement added.
The two companies had first announced start of a 45-day exclusivity period on May 26, which ended on Tuesday.
Further, RCOM and MTN have cautioned its shareholders in dealing in the scrip of the companies.
Shareholders are advised to exercise caution in their dealings in the companies' securities dealings until a further announcement is made, the two firms said in separate regulatory filings.
Amid the announcement of extension, RCOM shares rose 4.57 per cent, at Rs 434.40 in morning trade on the BSE.
Besides, MTN said in a filing to the Johannesburg Stock Exchange, "MTN has agreed to continue its negotiations with Reliance Communications in relation to such potential business combination, and has extended the period of exclusivity until July 21, 2008."
Shares of MTN had managed to close at 130 rand, up 100 rand on the Johannesburg Stock Exchange on Tuesday, recovering the drop it had witnessed during the day.
MTN shares had fallen ahead of an expected announcement by the company about the outcome of its exclusive talks with RCOM, which has been marred by the feud between two Ambani brothers, with elder Mukesh-led RIL threatening legal action if a deal breaches its first right of refusal in a majority stake in Anil Ambani group firm.
Shares of Reliance Industries were trading at Rs 2,036.50, up 2.93 per cent in the morning trade on the Bombay Stock Exchange.
