Shares in Reliance Communications dropped as much as 7 per cent, as the company called-off a deal with Aircel. The shares were last seen trading at Rs 17.85, a drop of 7 per cent on the National Stock Exchange.
Had the merger gone through, it would have created India's third-largest telecom provider.
"RCOM and Aircel Limited (Aircel) had signed binding agreements in September 2016 for the merger of RCOM's mobile businesses with Aircel. Legal and regulatory uncertainties, and various interventions by vested interests, have caused inordinate delays in receipt of relevant approvals for the proposed transaction," the company said in a release.
The board would now look at alternate plans for the mobile business, including debt reduction plans. The company has spectrum worth Rs 19,000 crores, and also plans to monetize land banks and cell towers that it has.