145;MTN, RCom looking for reverse takeover146;

The combined entity would create one of the world8217;s 10 largest mobile operators, the report said. The report quoted a source as saying: 8220;at this point, the talks are on a reverse takeover8230; But there8217;s no certainty this is going to be the final structure.8221;

The report noted that under the deal structure being considered, Anil Ambani 8212; who holds a 66 per cent stake in RCom 8212; could exchange his stake for shares in the merged entity. Incidentally, Bharti, while pulling out of talks with MTN, had said that MTN was proposing a deal under which it would have become a subsidiary of the South African firm.

The WSJ quoted another person saying that the deal has better prospects this time than the talks with Bharti, which did not want to lose its Indian identity in the merged entity. 8220;Ambani doesn8217;t seem to have this kind of concern,8221; it said, quoting the person. On May 26, RCom announced it has entered an exclusive negotiation with MTN to discuss potential combination of their businesses.