Reliance Communications shares up by 3 per cent on merger talks with Sistema

Mumbai: Shares of Reliance Communications are up by 3 per cent after the company said it's in talks to buy Russia-based Sistema's Indian arm to consolidate its position as the nation's fourth-largest telecom player. The stock moved up 2.97 per cent to Rs 60.60 on BSE.

On NSE, shares of RCom gained 2.88 per cent to Rs 60.55. RCom will offer shares in the company to Sistema Shyam TeleServices (SSTL) in return for acquiring spectrum and customers in nine telecom circles or service zones. "Reliance Communications and AFK Sistema have entered into exclusive discussions on a potential merger between the Indian telecom business of Sistema Shyam TeleServices Ltd and RCom through a stock swap," RCom had said in a statement yesterday.

According to industry sources involved in the deal, SSTL is pushing to have about 10 per cent stake in the resultant entity while RCom wants to settle it at around 7-8 per cent.