Reliance Communication merger on cards to raise funds

Reliance Communications is considering the options of either to merge with South Africa’s MTN or to find a strategic partner in order to raise funds. According to the reports, Reliance wants to raise funds for its foray into 3G mobile and wireless broadband access. Both the company had planned for partnership in 2008 also but it could not materialize for certain reasons.

On Thursday, the South African company said that it had received the merger proposal from Reliance Communications and it will be examined.

On Wednesday, Abu Dhabi’s Etisalat also had said that it was likely to buy a stake in an Indian mobile operator, though its name was not disclosed. Reports that it was planning to buy a stake in cash-hungry Reliance Communication.