Update: Reuters reports that MTN has denied being in talks with Reliance Communications. Earlier (June 2): Reliance Communications has put out a boilerplate notice saying that: 'With reference to the news item appearing in a leading financial daily titled "Etisalat in talks to acquire 25% in Reliance Comm", Reliance Communications Ltd has clarified to BSE that the Company has been receiving various proposals from time to time from reputed International Telecom Companies expressing interest in acquiring a strategic equity stake in RCOM. The Company evaluates such proposals, in line with the Company's policy to constantly endeavor to enhance overall shareholder value.' The statement was issued following a report in the Times of India, quoting "market sources" suggesting that UAE owned telecom company Etisalat was looking to acquire 25% stake in Reliance Communications for around Rs. 18,000 crore, and post acquisition of stake, make an open offer for 20% more stake in the telecom company. Following this deal, the companys paid up capital would expand by 25%, though a majority 55% stake would still be held by ADA Group Chairman Anil Ambani. Ambani currently owns 67.58% in the BSE and NSE listed telecom operator. Following this report, Etisalat's Chairman told Reuters that the company is looking to buy a stake in an Indian telecom operator, without specifically mentioning which. Meanwhile, the Economic Times had also reported a few days ago, quoting "a person familiar with the development " that South African telecom operator MTN was going to resume merger talks with Reliance Communications. While…
