Economy

RCom calls off merger with Aircel due to legal, regulatory uncertainties

RCom calls off merger with Aircel due to legal, regulatory uncertainties”

Reliance Communications and Aircel have called off talks for a possible merger of their respective mobile service operations. In a statement submitted to the Bombay Stock Exchange (BSE), Reliance Communications said that the decision to call of the merger with Aircel has been taken in view of the uncertainties present in the regulatory environment. The report says that RCom had been trying to reduce its heavy debt by 250 billion rupees by merging its wireless business with rival Aircel.

The company, widely known as RCom, said it had agreed with Aircel to call off the proposed deal due to regulatory delays and legal uncertainties. "It is not in the general ward, it is not in the ICU, it is in the ICCU", Ambani said at Reliance Communications' (Rcom) annual general meeting, as per PTI.

The company said it will evaluate alternative plan for its mobile business by optimising spectrum portfolio and focus on 4G technology as part of its ongoing strategic transformation.

The decision comes days after Anil Ambani had said the telecom sector is in an "ICCU" with government and lenders most at risk. Unprecedented competitive intensity in the Indian telecom sector, together with fresh policy directives adversely impacting bank financing for this sector, have also seriously affected industry dynamics. Due to these reasons, the merger with Aircel has been called off, RCom said. The company is now trying to raise funds through optimization of spectrum portfolio and sale of its tower and fiber assets and real estate. These are expected to generate around Rs 25,000 crore for the cash-strapped company.



Like this

loading...
loading...

Latest


01 October 2017
CVR Refining, LP (NYSE:CVRR) Rating Lowered to Hold at ValuEngine
CVR Refining, has a 52 week low of $6.45 and a 52 week high of $12.55. 18 funds opened positions while 16 raised stakes. Several hedge funds and other institutional investors have recently made changes to their positions in CVRR.

01 October 2017
Facebook tests facial recognition for account recovery
Facial recognition seems to be the new biometric authentication method tech companies are rolling with lately. Adding this feature to Facebook would help users quickly access their accounts should they be locked out.

01 October 2017
Choate Investment Advisors Trims Position in Cognizant Technology Solutions Corporation (NASDAQ:CTSH)
The firm owned 67,145 shares of the information technology service provider's stock after selling 71,500 shares during the period. The stock of Washington Prime Group Inc (NYSE:WPG) has "Neutral" rating given on Friday, July 15 by Goldman Sachs.

01 October 2017
Next Weeks Broker Price Targets For H&E Equipment Services, Inc. (NASDAQ:HEES)
BidaskClub upgraded H&E Equipment Services from a "buy" rating to a "strong-buy" rating in a report on Tuesday, August 1st. Traders are a little more bullish on H&E Equipment Services, Inc. of late if you take note of the fall in short interest.

01 October 2017
Dieselgate: VW to take another $3 bn hit; ex-official held
On Saturday, a spokesman for Audi said the working relationship with Weiss "has been terminated by mutual consent". He was suspended after the diesel emissions test-cheating was exposed, and then left the company.

01 October 2017
Trump to travel to Asia on November 3-14: White House
He has been pressing Beijing for more balanced trade and been openly critical of China's large trade surpluses with the US. While his efforts have had limited success thus far, he went out of his way to thank Mr Xi on Tuesday for his efforts.

01 October 2017
EPS for UnitedHealth Group Inc (UNH) Expected At $2.57
Facebook enables people to connect, share, discover and communicate with each other on mobile devices and personal computers. The healthcare conglomerate reported $2.46 EPS for the quarter, topping the consensus estimate of $2.38 by $0.08.

01 October 2017
Boy, 17, charged after 'hazardous' material closes motorway
The substance, which was thrown from a motorway bridge near Winchester , was later discovered to be flammable, not explosive. A motorist caught up in the miles of stationary traffic said a police officer had described the hold up as a "bomb scare".

01 October 2017
Rex Tillerson meets China leaders to pile pressure on North Korea
China has consented to extreme new United Nations sanctions that would generously cut outside income for the disconnected North. Trump's November trip will be part of a tour that will also take in regional allies Japan and South Korea.

01 October 2017
Carlo Ancelotti 'could be sacked today' as Bayern Munich plan crisis talks
Rummenigge hinted at possible repercussions for the PSG result, saying: "It's a loss we have to talk about, we have to analyse. I now expect the team to have a positive development and top performance, so we can reach our goals for this season".