RCom shares hit 52-week low of Rs 17.45 after merger talks with Aircel derail

The shares of Anil Ambani led Reliance Communications were reached to 52-week low after the merger talks with Aircel got off the track. 

The stocks were lower by about 5% intraday on Tuesday and were trading an all time low of Rs 17.45

The real reason for Anil Ambani-owned Reliance Communications (RCom) and Aircel for calling off the merger between them was more to do with the former's "ambitious expectation" on valuation front rather than the cited "legal and regulatory" delays, according to industry insiders.

"It (failure of merger) is more a question of realism on the part of RCom on what the valuation its assets command and as soon as the gap between ambitious expectation and reality closes they (RCom and Aircel) will find a solution to the situation they are in," an industry insider told DNA Money on condition of anonymity.

A few industry insiders, whom DNA Money spoke to, still expect the two could to come together if they managed to somehow resolve their differences.

According to the above executive, there were some "conditions preceding" to the merger that may have been the cause for differences between them.

"There were some conditions preceding to the merger. That may have been the cause. Parties were supposed to bring to the table something, over and above what the two companies had in terms of assets. That was the only unknown part. I am assuming something happened there," he said.

Experts believe the failure of the two unviable telecom firms to combine their business would not impact the ongoing consolidation taking place in the sector in a major way.