RCom likely to start due diligence of MTN in next two days

Having entered into exclusive negotiations for merging its business
with MTN, Reliance Communications is likely to start due diligence of
South African telecom giant in next two days.


According to sources close to the development, Anil Ambani's team is
likely to get hold of MTN books in next 48 hrs as a part of due
diligence process.



Any decision on the structure of the new entity in the post-merger
scenario will be taken only after completion of the due diligence.



Asked by when the process would be completed, sources said there is
exclusivity of 45 days by when the two companies have to decide on the
potential merger.



On 26th May, RCom announced entering into exclusive negotiations with
MTN to discuss potential combination of their businesses.



RCom Chairman Anil Ambani had said talks were aimed at achieving "a
partnership, which would provide investors, customers and the people
of both companies a unique and global platform for exponential growth,
creating substantial long-term shareholder value".



On 24th May, Bharti Airtel ended its 21-day negotiations with MTN on
the ground that the South African company proposed to make the Indian
company a subsidiary.