RCOM Shares Rise More Than 3% : Merge With MTN

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Reliance Communications(RCOM), India's no. 2 telecom firm in shares  rose more than 3 per cent on Thursday(03/06/10) after a report that it was considering an amalgamation with South Africa's MTN or roping in a strategic foreign investor to raise funds.

Abu Dhabi's Etisalat said on Wednesday it was looking to buy a stake in an Indian mobile operator, but did not disclose any names. A newspaper had reported it was in talks with cash-hungry Reliance Communications for a $3.8 billion deal.

At 0343 GMT, shares in the billionaire Anil Ambani-controlled firm were up 2.3 per cent at Rs 158.10, after rising to as high as Rs 159.50.

Shares in No. 1 Indian telecoms firm Bharti Airtel were up 0.5 per cent, while smaller rival Idea was up 1.1 per cent.

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