The snapping of the Bharti-MTN deal and Reliance Communications’ announcement of an exclusive agreement with the South African telecom major in less than 48 hours has created considerable excitement in deal circles. More so, because MTN did not accept Bharti Airtel’s proposal of an exclusivity clause while initiating negotiations, while Reliance Communications managed a 45-day period for exclusive one-to-one talks.

“It is very difficult for Reliance to make a proposal to MTN in such a short span and MTN too to go through it and agree for not engaging in talks with any other suitor for the next 45 days. Mind it, all this happening in less than 48 hours of Bharti Airtel calling off the deal,” said a banker watching the developments. He said, the Reliance offer clearly had to be better or at least as good as Bharti’s.

On Saturday, Bharti Airtel called off the proposed deal, saying MTN had backed out from a structure that was initially agreed upon by the two through their respective bankers on May 16. “The new structure envisages Bharti Airtel becoming a subsidiary of MTN and exchange of majority shares of Bharti Airtel held by the Bharti family and Singtel, in exchange for a controlling stake in MTN,” said an official statement of Bharti Airtel.

Earlier in the day, Reliance Communications announced it had entered into “exclusive negotiations about a potential combination of their businesses” with MTN. Negotiations were currently underway and the two companies would have 45 days to work out the details of a merger, it said. The Indian Express reported in today’s edition that Reliance Communications had started negotiations with MTN for a part cash, part equity deal.

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