Shares in India's Reliance Communications fell nearly 11% in a weak market, weighed down by concerns that talks for a potential tie-up with South Africa's MTN Group may fail, a Reuters report said.

Reliance Communications, India's No. 2 mobile operator, and MTN began talks last month for a possible business combination that would create a top-10 global telecoms firm with operations in about two dozen countries, the report said.

The companies have said they are engaged in exclusive talks for a 45-day period, which ends on July 9.

"The deadline's getting closer, and there is no indication of what the outcome is going to be," Nishna Biyani, telecom analyst at Prabhudas Lilladher, quoted by a Reuters report, said.

"Still, these are big companies and due diligence can take a while, and I wouldn't be too perturbed."

A spokesman for Reliance Communications declined comment on the shares, and said he had no updates on the talks with MTN.

Reliance Communications had said last month a claim of first right of refusal by Reliance Industries over the mobile operator would not delay its talks with MTN.

But some traders said there were fresh concerns that Reliance Industries, run by Mukesh Ambani, the estranged brother of Reliance Communications Chairman Anil Ambani, may throw a spanner into the tie-up talks, and these had pushed down the share price, according to the Reuters report.

Source:Wireless Asia