Reliance Communications up on acquisition buzz

Reliance Communications has moved up 3% to Rs 144, on reports that UAE-based telecom major Etisalat is in talks to buy a 25% stake in the company.

After acquiring 25% in the company, Etisalat will make an open offer to acquire an additional 20% stake from the public. At present, 67.58% equity in Reliance Communications is owned by Anil Ambani and the rest by public and institutional investors. If the proposed deal is completed, the company's paid-up capital will expand by 25%, which will bring down Anil Ambani's stake to around 55%.

The negotiations are at an advanced stage for the deal, which would be worth around Rs 18,000 crore, report added.

The stock opened at Rs 142 and touched high of Rs 144. Around 196,000 equity shares have already changed hands on the counter so far on the BSE.