GTL Infrastructure said on Monday it has called off the deal to merge the telecom tower business of Anil Ambani-led Reliance Infratel with itself.
"The Non-Binding Term Sheet signed by both parties dated June 27, 2010, expired on August 31, 2010," the company said in a filing to the Bombay Stock Exchange.
"Despite efforts, both parties have neither extended the Term Sheet nor entered into any definitive transaction agreements as envisaged therein. Consequently, the process of merger as originally contemplated would not take place," the
On June 27, the boards of GTL, RCom and its subsidiary Reliance Infratel Ltd had given in-principle approvals to the Rs 50,000-crore ($11 billion) merger deal to create the world's largest independent telecom infrastructure company, neither owned nor controlled by any telecom operator.
Reacting to the development, shares of GTL Infrastructure plunged up to 6.72 per cent to Rs 42.35 in early trade on BSE while Reliance Communications fell 1.07 per cent to Rs 161.65.