Tata, Sistema merger talks advance, report says

26 Jun 2013

Talks between Tata Teleservices, majority owned by the Tata Group, and Russia’s Sistema over a possible merger are at an advanced stage, according to a report by The Economic Times, which cites two people familiar with negotiations. The sources say that the talks between the two companies centre on a deal that transfers Japanese firm NTT DoCoMo’s stake as well as part of the Tata Group’s holding in Tata Teleservices to Sistema. One of the people added that Sistema has appointed Rothschild to advise on the matter, while Tata has hired Standard Chartered Bank. However, a potential transaction will be delayed until a new merger and acquisition policy is announced for the telecoms sector, which is expected in the next three months, according to an unnamed senior official in the Department of Telecommunications.