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RCom shares up 3% on merger talks with Sistema

"Reliance Communications and AFK Sistema have entered into exclusive discussions on a potential merger between the Indian telecom business of Sistema Shyam TeleServices Ltd and RCom through a stock swap," RCom had said in a statement yesterday.

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Shares of Reliance Communications rose nearly 3% after the company said it's in talks to buy Russia-based Sistema's Indian arm to consolidate its position as the nation's fourth-largest telecom player. 

The stock moved up 2.97% to Rs 60.60 on BSE. On NSE, shares of RCom gained 2.88% to Rs 60.55. RCom will offer shares in the company to Sistema Shyam TeleServices (SSTL) in return for acquiring spectrum and customers in nine telecom circles or service zones. 

"Reliance Communications and AFK Sistema have entered into exclusive discussions on a potential merger between the Indian telecom business of Sistema Shyam TeleServices Ltd and RCom through a stock swap," RCom had said in a statement yesterday. 

According to industry sources involved in the deal, SSTL is pushing to have about 10% stake in the resultant entity while RCom wants to settle it at around 7-8%.

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