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African media speculating on RCOM-MTN deal

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Press Trust of India Johannesburg
Last Updated : Jan 20 2013 | 9:47 PM IST

However, it added that "this is all a bit of guesswork because MTN has maintained absolute radio silence on the transaction."    

The report further said if the deal terms were changed, "it could be awkward for MTN CEO Phutuma Nhelko, who by all accounts entered the negotiations on the expectations that MTN would be the takeoveror and exited it the takeoveree."    

The report said the speculated change in deal terms comes amidst resurfacing of family feud between the Ambani brothers after elder sibling Mukesh-led Reliance Industries wrote a letter to MTN saying it had Right of First Refusal on any deal involving sale of RCOM, which is 66 per cent owned by Anil Ambani.    

RCOM has said that the claim is part of a "mala-fide design, with no substance, to simply try and disrupt talks between RCOM and MTN, by raising the false bogey of litigation and damages," the report said.    

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The Business Day report further said that various media reports around the world are suggesting that "the deal is being restructured partly to avoid the possibility of Mukesh intervening."    

RCOM and MTN had announced start of 45-day exclusive talks for a possible deal on May 26 and that period is scheduled to end by the next week.

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First Published: Jul 01 2008 | 6:18 PM IST

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