S.Africa's MTN shares down 6.3 pct after talks end

JOHANNESBURG, July 21 (Reuters) - Shares in South African mobile phone group MTN (MTNJ.J) fell as much as 6.3 percent after it said it had ended exclusive talks with India's Reliance Communications (RLCM.BO).

MTN shares dropped as much as 6.3 percent, and by 0724 GMT the stock was trading 6.75 percent lower at 121.50 rand while the JSE Securities Exchange's Top-40 index .JTOPI was 1.02 percent higher.

MTN said on Friday it had called off talks with Reliance Communications aimed at creating a top-10 global telecoms group, saying they could not reach a deal.

"Owing to certain legal and regulatory issues, the parties are unable to conclude a transaction. Accordingly, it has been mutually decided to allow the exclusivity agreement to lapse," MTN said. (Reporting by Gugulakhe Lourie)