GTL Infrastructure is making discussions with Essar Telecom Infrastructure for a possible merger.

A GTL official stated, “We are in discussions with the Essars for a merger of the towers business.”

The official also said that a due-diligence exercise was on, and the final verdict is likely to be taken within 3-4 weeks.

A report stated, “GTL Infrastructure and the Essar Group have agreed to combine their telecom tower business into one entity in a transaction that could be worth at least about $2 billion.”

Essar Telecom CEO Ajay Madan said, “We are in discussions with several companies for consolidation and merger. However, no transaction has been finalised yet.”

According to the sources, GTL Infrastructure may merge its tower business with Essar group’s telecom tower business in a deal worth US$2 billion.

Presently, GTL Infrastructure holds around 6,000 towers, and the number is expected to rise by about 50% and the combined entity is likely to have about 20,000 towers by June 2008.

GTL Infrastructure will hold the majority stake in the merged entity, the report also said.