Business Daily from THE HINDU group of publications
Friday, Jul 18, 2008
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Business Daily from THE HINDU group of publications Friday, Jul 18, 2008 ePaper | Mobile/PDA Version | Audio |
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Telecommunications Info-Tech - Corporate Disputes
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Mumbai, July 17 Reliance Industries said it has commenced arbitration proceedings in the Reliance Communications-MTN matter, and has nominated Mr Justice B. P. Jeevan Reddy, a former Judge of the Supreme Court, as an arbitrator for resolution of the dispute. Late in May, Anil Ambani-promoted Reliance Communications and South African mobile telephony operator MTN entered into an agreement for a 45-day exclusive negotiation period for a proposed merger of their businesses. The deadline for this which was July 9, was later extended to July 21. A merger held the possibility of a share swap that could result in RCom becoming a subsidiary of MTN. However, Reliance Industries Ltd threw a spanner in the works sending a letter to RCom and MTN claiming it had the right of first refusal (ROFR) on any sale of shares of RCom. RIL cited an Ambani family settlement agreement that was entered into in 2005 and another agreement between the two Reliance groups of 2006. RCom which has always refuted the validity of the ROFR said RIL’s notice for arbitration proceedings is “legally and factually unwarranted”. Arbitration is something mutually entered into, not unilaterally arranged, said a company source. “RCom has refused to participate in the conciliation meetings under the alternate dispute resolution provisions contained in the Non Competition Agreement,” said RIL. Mukesh Ambani meets PM Ambani brothers shoot off letters Reliance: The sibling rivalry continues Reliance calls RCom for talks on MTN bid RCom may proceed legally against RIL officials More Stories on : Telecommunications | Corporate Disputes | Reliance Industries Ltd | Reliance Communications Ltd
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