Reliance Communications Ltd said on Monday that it has ended talks with TL Infrastructure Ltd for selling some of its assets to the company. The talks ended since both the companies failed to agree to some solid point for the dealing.

Had this been successful, the two would have formed the second-largest operator of mobile-phone towers in India.

The non-binding agreement that took place in June was ended on August 31 and neither of the sides were ready to extend their deadline.

Reliance is said to have started talks with possible investors and was also coming up with an IPO of the new unit. The name that it had decided was Reliance Infratel Ltd.

Analysts believe that the deal was important for both the parties and that it could have generated an initial value of 500 billion rupees.

Post the announcement, shares of Rcom fell down on the bourses and it ended at a low. The shares went down 0.3 per cent and ended at 162.85 rupees at the 3:30 p.m. close in Mumbai. GTL increased by .3 per cent to end at 45.80 rupees.