RCOM and Aircel to renegotiate terms of the proposed merger

Reliance Communications (RCOM) and Aircel have decided to renegotiate the terms of their proposed merger. The two operators will combine their wireless business and the parent companies will hold 50 per cent each in the merged entity. Earlier, the operators were planning to float a new listed company to run their combined wireless business. RCOM and Aircel will also transfer Rs 140 billion of debt each to the wireless company, instead of the Rs 100 billion agreed upon earlier. In addition, they will retain the 2300 MHz 4G airwaves that Aircel had planned to sell to Bharti Airtel. The final deal is expected to be closed by September 2016.