Anil Ambani-led Reliance Communications [Get Quote] and South African telecom giant MTN may announce as early as this weekend an amalgamation deal, which would be 'worded' in a way aimed at averting any legal action, a media report said.

A deal between MTN and RCom could be announced this weekend despite threats of legal action to block the deal, the Wall Street Journal said in a report in its online edition on Thursday, quoting two unnamed people familiar with the situation.

"The deal will be worded in such a way that it will likely avert a lawsuit from being filed. But, in any case, (RCom and MTN) are prepared to move forward and deal with the Mukesh Ambani challenge when and if it comes. Their lawyers are telling them it's an acceptable risk to take," the report quoted one of the people saying.

The report added that the two companies are "getting very close to announcing the deal. If there are no last-minute disagreements, the announcement may come as early as Sunday or sometime next week."

Another report in the British daily Financial Times said RCom is tying up with some global private equity and West Asian sovereign funds for acquiring a majority 51 per cent stake in South African telecom major MTN, with an aim to thwart off any possible legal challenge from elder brother Mukesh-led Reliance Industries [Get Quote].

"A consortium led by Indian billionaire Anil Ambani is considering taking a majority stake in South African mobile operator MTN to help stave off a potential legal challenge from his elder brother, Mukesh Ambani, to the deal that has been under discussion," the report said.

Quoting an unnamed person familiar with the deal, the Financial Times report said a special purpose vehicle controlled by Anil Ambani with co-investments from global private equity and West Asian sovereign wealth funds would own 51 per cent of MTN under the proposed new structure.

Earlier reports had said it could be MTN acquiring a majority stake in RCom, after which Reliance Industries warned of a legal action in letters shot off to MTN and RCom, claiming such a deal would breach a right of first refusal it has over the sale of a controlling stake in the Anil Ambani group company.

A possible amalgamation between RCom and MTN, exclusive discussions for which started between the two parties late in May, could create a combined entity worth an estimated $70-80 billion.

According to the Financial Times report, the old structure had Anil Ambani and his co-investors planning to acquire a 40-45 per cent stake, against about 51 per cent being discussed now.

This new structure would require a much larger cash top up from private equity firms of about $10-11 billion, about three times the level earlier expected, the report said.

There are also reports that hit by uncertainties caused due to the feud between two Ambani siblings, RCom and MTN are now believed to be discussing an extension of exclusivity agreement between them by a few weeks.

RIL had earlier written a letter to both the companies asserting its right of first refusal on majority stake in Reliance Communications, but these claims are being contested by the Anil Ambani group.