Shares in South African cellphone group MTN fell as much as 6,3% after it said it had ended exclusive talks with India’s Reliance Communications.
MTN shares dropped as much as 6,3%, and by 7.24am GMT the stock was trading 6,75% lower at R121,50 while the JSE Securities Exchange’s Top-40 index was 1,02% higher.
MTN said on Friday it had called off talks with Reliance Communications aimed at creating a top-10 global telecoms group, saying they could not reach a deal.
”Owing to certain legal and regulatory issues, the parties are unable to conclude a transaction. Accordingly, it has been mutually decided to allow the exclusivity agreement to lapse,” MTN said.
The companies started talks on May 26 as part of an effort that would have created an emerging markets telecoms group with operations in about two dozen countries and about 120-million subscribers. – Reuters