South African telecom major MTN Group is open to extending the earlier agreed 45-day exclusivity deadline with Reliance Communications [Get Quote] for talks to discuss a potential combination of their businesses.

A high-profile team from MTN is also expected to meet Reliance Industries Ltd [Get Quote] next week to take stock of the situation. RCom had informed the bourses on May 26 that it has entered into exclusive negotiations with MTN for 45 days soon after the South African giant aborted its talks with the Sunil Mittal-controlled Bharti group. The deadline will end on July 8.

• MTN: Ambani brothers' war to intensify

Sources said MTN has no problem in extending the exclusivity period if a resolution of the current dispute takes time. "After all, the talks are going in the right direction and some key issues have been resolved," said a source close to the deal. However, an MTN Group spokesperson in Johannesburg said, "We cannot comment on the matter of extension at this stage because it would be speculative to do so."

Sources close to the Anil Ambani camp said that the MTN Group has assured RCom of its cooperation during "these trying times". The due diligence process is almost complete and the companies only have to agree to the valuations.

RCom seeks to claim damages

RCom fired a fresh salvo in the ongoing feud between the Ambani brothers by threatening to claim damages from RIL, in case the latter chooses to take legal action.

RIL had sent a letter to MTN as well as RCom saying it has the first right of refusal to buy the controlling interest in the Anil Ambani-controlled telecom company.

Pointing out that RIL's move reflects "ulterior and mala fide motives," RCom said "if RIL chooses to take any legal action, the same will be vigorously defended and RCom will claim costs and damages from RIL."

The RCom letter, released to the media on Sunday, said there is no question of taking note of any alleged rights on RIL's part.

RCom also stated that the use of "threatening and coercive language by RIL" against MTN is "very unfortunate".

Don't create confusion: RIL

The Mukesh Ambani camp cautioned the Anil Ambani-led group not to create confusion between the family settlement and agreements signed between the two groups.

Sources close to Mukesh Ambani-led RIL said that enforceability of agreements signed in 2006 has been asserted with "full sense of restraint and responsibility" and RIL expects all parties to maintain the same level of responsibility.

RIL has not received any communication from the Anil Ambani group, sources said, questioning the claims made by RCom.

"The family arrangement of June 2005 is distinct and different from the non-competition agreement dated January 12, 2006, and the gas master supply agreement, to both of which RIL was a signatory," they added.

The sources further said that these two agreements, executed pursuant to the sanctioned scheme of demerger, are not to be confused with the family MoU as these are distinct and separate and contain distinct rights and obligations.