The Hindu Business Line : Ambani brothers shoot off letters

Mumbai, July 7 The row between the estranged Ambani brothers over Reliance Industries’ claim of having the first right of refusal over sale of the controlling stake in Reliance Communications, scaled a higher pitch on Monday, threatening to scuttle the proposed deal between RCom and South African telecom giant MTN.

This came barely 24 hours before the 45-day exclusive arrangement for negotiation between RCom and MTN on the proposed merger expires on Tuesday. There were reports in the foreign media that MTN was mulling to walk away from the deal as the Ambani duel may cause legal problems. There was a flurry of letters exchanged between RIL and RCom which started with RIL claiming that RCom did not respond to its letter dated July 2. RIL had asked for a meeting with the latter’s official at a neutral venue on Monday to discuss the disputes between the two companies over the non-competition agreement of January 12, 2006.

‘No one turned up’

RIL said in its letter to RCom that three of its officials — Mr K.G. Ramnathan, Mr K. Sethuraman, and Mr K.R. Raja — were present at the neutral venue till 12 noon on Monday. “We have to place on record that no person representing you (RCom) came to attend the meeting, nor was any information or communication received from you by us,” the letter said.

RCom shot back a letter, stating that “there is neither any dispute nor any occasion for any conciliation process, as claimed by you.” In the letter, RCom wanted RIL to “indicate a few alternate time slots in the week beginning July 14.” It went on to add that “for the avoidance of doubt, please note that this meeting shall in no way be considered a part of any conciliation or dispute resolution mechanism.”

RIL has, however, turned down the RCom invitation, stating that “in view of your refusal to participate in any conciliation or dispute resolution mechanism, we are left with no alternative but to adopt such proceedings against you, at your entire risk as to costs and consequences.” What apparently RIL meant was that it would go ahead with legal proceedings.

Related Stories:
Reliance calls RCom for talks on MTN bid
RCom continues talks with MTN despite RIL objection

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