Oct 3: With the merger talks between Reliance Communications and Aircel having been called off owing to legal and regulatory delays, the Reliance Communications stock took a beating on the bourses today.
RCom shares on the BSE nosedived on Tuesday to over 9 % in morning trade after the company said the merger talks were being called off. Opening weak at Rs 18.70, the RCom stock dived further to an early-day low of Rs 17.45, down 9.11 % over its previous closing price.
A similar pattern was exhibited by the stock on the National Stock Exchange too, after opening at Rs 18.65. The stock fell to touch a low of Rs 17.70, down 7.81 % over its last close.
It may be recalled that the two companies – RCom and Aircel – had entered into binding agreements back in September last year to merge their mobile business. However, with uncertainty looming over legal and regulatory approvals, R Com had to call off the merger plan.
According to reports quoting RCom top brass, the legal and regulatory uncertainties apart, there also have been interventions by vested interests that resulted in delaying the approvals. .
Reliance Communications is under huge pressure as debt has been mounting. The company is under debt of about Rs 46,000 crore, and could now look at sale of real estate assets. The sale of its tower and fibre business might also be mulled over, reports added.