Well after Bharti's failed bid for MTN, another major Indian telecom company has jumped to buy MTN. This time it's Reliance Communications, India's No.2 mobile operator which is part of the Reliance ADAG Group.
MTN and Reliance Communications on Monday said they were in exclusive talks aimed at a potential combination of their businesses, that could create a USD 66 billion telecoms giant. Under the deal MTN would become a holding company of India`s No 2 mobile operator, and Ambani would in return get around a third in the South African firm, and keep an indirect holding of nearly 20 percent in Reliance Communications. This may result in a transfer of Chairman Anil Ambani`s two-thirds stake in the Indian firm to MTN.
That would trigger an open offer from MTN for another 20 percent of Reliance Communications, as Indian law mandates such an offer to shareholders after an acquisition of more than 15 percent of a company.
The management structure at MTN and RCom will remain unchanged but the companies may opt for a common board of directors eventually. MTN is Africa’s biggest phone firm with networks in 21 countries spanning South Africa to Nigeria to Iran. It has more than 68 million customers to RCom’s 45 million in India. MTN is valued at some $38 billion by market capitalization against RCom’s $28 billion.
This will be the second attempt by Reliance to try and beef up through deals. The company lost out to Vodafone in an auction for Hutchison Essar Ltd, in part because its advisers didn’t anticipate India’s mobile phone market will continue to expand as rapidly as it has done and the company failed to raise its bid. Seems like it's trying to catch up this time 
After Bharti fails, Reliance tries to merge with MTN
Source : Mint
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