India's Reliance Communications (RLCM.BO) and AT & T (TN) has talked of a possible transaction where the U.S. telecoms giant will take a significant minority stake in Indian business, "says Wall Street Journal Monday, referring people familiar with the matter.
The sources said that the consultants and officials of both companies have been in contact in recent weeks, although talks were informal and at an early stage according to the Wall Street Journal reports.
The sources also warned that a deal was not imminent, according to the report.
Reliance Comm, India's No.2 mobile operator said Sunday its board had agreed to sell up to 26 percent of the company, which could be worth nearly two billion U.S. dollars at current market levels, even if it does not disclose a timeframe or details about the sale. [ID: nSGE655019]
Shares in Reliance Comm, burdened by debt and the cost of rolling out 3G services, increased by 14 percent last week, with speculation rife that Abu Dhabi's Etisalat (ETEL.AD) and South Africa's MTN (MTNJ.J) could be potential partners. [ID AT & T looking at international expansion as the domestic market saturated fat, limiting the opportunities for future growth. (Editing by Valerie Lee) ((dhara.ranasinghe @ reuters.com; 65 6870 3277, Reuters Messaging: dhara.ranasinghe.reuters.com @ reuters.net)).
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