Wednesday, June 26, 2013


The Merger talks between TataTeleservices and Russia's Sistema are in advanced stage, with negotiations centered on a deal that transfers NTTDoCoMo's stake as well as part of the Tata Group's holding to Sistema, giving it a substantial shareholding, said sources familiar with negotiations.

The two companies have appointed bankers - Rothschild for Sistema, which operates under the MTS brand, and Standard Chartered Bank for the Tata Group - said one of the two people.

The transaction will be held up till a new merger and acquisition policy is announced for the telecom sector. A senior official in the department of telecommunications, asking not to be named, said the policy is likely to be announced in three months.

Current M&A norms are not conducive for the deal as they may require MTS to either surrender or pay the market price to retain the airwaves held by Tata Tele.

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