Mumbai: Reliance Communications shares on Tuesday rose over 2 percent after the company said it is in talks with Aircel for a possible merger of the wireless business.


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The Rcom's shares ended the day 2.39 percent higher at Rs 85.70 on BSE. During the day, it gained 4 percent to Rs 87.10 - its 52-week high.


On NSE, shares of the company moved up by 2.2 percent to end at Rs 85.65.


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The Anil Ambani-led telecom company said, "It has entered into a 90-day exclusivity period with Maxis Communications Berhad (MCB) and Sindya Securities and Investments Private Limited, the shareholders of Aircel Limited, to consider the potential combination of the Indian wireless businesses of RCom and Aircel."


RCom is already in the process of merging Indian mobile telephony business of Sistema Shyam Teleservices under MTS brand.


According to sources, the proposal on the table includes operation of mobile business of three companies - RCom, MTS and Aircel, under a new entity led by RCom.


The merged entity will be created through equity deal where RCom's shareholders are looking for three shares against each held by them.


The current debt of RCom, estimated to be around Rs 10,000 crore, will be transferred to this new entity and the company will become free of debt, sources said.


"With merger of MTS and Aircel, Reliance Communications will become a formidable entity with approximately 200 million subscribers. Furthermore, with spectrum consolidation, it can plan its longer term business strategy better," Gartner Research Director Amresh Nandan said.


"It will allow them (RCom) to target high-end services on mobile broadband and business-centric mobility solutions."