The Hindu Business Line : Reliance calls RCom for talks on MTN bid

Reliance Industries Ltd has called Reliance Communications for conciliatory talks on the issues related to the sale of RCom's stake to the South African telecom major MTN, a spokesman for RIL today said.

RIL has sent a letter to both MTN board and RCom in this regard, the spokesman said. The call for the conciliatory talks is a formality before starting arbitration, the spokesman said.

RIL had earlier told RCom and MTN that it had the first right of refusal if RCom wants to sell its stake.

The RIL spokesman said: "We have invoked the provisions of dispute resolutions contained in the non-compete clause of the January 12, 2006 agreement and have invited RCom to participate in mutual conciliatory talks (as contained in the agreement), prior to commencement of formal arbitration," the spokesman said.

The timing of the letter assumes significance as the RCom-MTN exclusivity pact for talks is expected to expire the coming Wednesday.

RIL claims that the right of refusal clause was included in its agreement with RCom signed in 2006.

RCOM COOL TO OFFER

Aspokesperson for RCom said, "This is only a sign of RIL's increasing desperation and frustration".

RIL's claim of a right of first refusal is simply an excuse to try and disrupt the creation of one of the world's most valuable telecom combinations, with a unique footprint covering the emerging growth markets of India, Africa and West Asia .

RIL's claim is entirely mala fide and baseless, and is simply an unfortunate reflection of its bitter corporate rivalry. RIL's reference to an Agreement dated January 12, 2006, is misleading, as RCom had written to RIL the very same day, and rejected the unilateral procedure adopted for finalising such Agreements as being illegal.

The Bombay High Court has upheld this stand by a judgment delivered on October 15, 2007, an RCom statement said.