MTN denies Reliance talks

South African telecoms giant MTN Group has denied that it is engaged in discussions to take a stake in India’s third-largest mobile operator.
The Johannesburg-listed wireless communications group today dampened down the speculation that had flared in…

South African telecoms giant MTN Group has denied that it is engaged in discussions to take a stake in India’s third-largest mobile operator.

The Johannesburg-listed wireless communications group today dampened down the speculation that had flared in recent weeks. MTN’s executive for corporate affairs Nozipho January-Bardill said emphatically that the company is not in discussions to merge with or even purchase a stake in Reliance Communications. Nor is it interested in beginning such talks now.

On Wednesday Reliance, India’s second-largest mobile company by subscribers, had intensified the rate of rumours as it admitted to having received proposals from international telecommunications companies interested in buying a strategic stake, though it chose not to name the firms.

MTN, Africa’s largest mobile network, has been in discussions with Cairo-headquartered Orascom since April over the possible acquisition of its assets in Africa, although the process had been complicated by the objections of the Algerian government to MTN’s acquisition of the jewel in Orascom’s African crown, Djezzy. However, this resistance has been broken down and the Algerian government has agreed to enter into the talks.

MTN and Reliance have a long mutual association, after coming close to agreeing a merger in 2008 that would have seen Reliance chairman Anil Ambani swapping a 67% stake in the Indian firm for MTN shares, though a feud between Ambani and his brother Mukesh banjaxed the deal.