Financial Daily from THE HINDU group of publications
Sunday, Mar 05, 2006
Financial Daily from THE HINDU group of publications Sunday, Mar 05, 2006 |
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Corporate
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Corporate Disputes Industry & Economy - Regulatory Bodies & Rulings Info-Tech - Telecommunications Birla Group terms Tatas' notice as `malafide' Our Bureau
New Delhi , March 4 One of the biggest corporate battles in the telecom sector is all set to snowball into a full-fledged war with the Aditya Birla Group terming the termination notice sent by the Tata Group over Idea Cellular as illegal and malafide. The Birlas have sent fresh papers to the Department of Telecom (DoT) in a bid to prove that Tata Group was one of the promoters of the Idea Cellular, contrary to the claims made by the latter. DoT has sought information on the shareholding structure of Idea Cellular and Tata Teleservices, including its operating company in Maharashtra. While Tatas have sent a number of letters to the DoT claiming that they were not the promoters of the cellular company, Birlas have pointed out to the Articles of Association of Idea Cellular, which apparently lists the founders as the AT&T Wireless group, the AV Birla group and the Tata group. Birlas have warned against any transfer of shares of Idea Cellular to any third party. The Tatas had last week sent a termination notice to the Birla Group for breach of shareholders agreement and also sought to buy out Birla's stake in Idea Cellular. The notice from Tata said, "The AV Birla are a defaulting founder and we shall proceed to purchase the shareholding of AV Birla group within 90 days of this notice at the default price. We, hereby, put you to notice that by disclosing the financial data of Idea Cellular (ICL) to Aditya Birla Nuvo Ltd's investors, ABNL has caused a material breach of the ICL Share Holder's Agreement." The Birlas had earlier asked the DoT to direct Tatas to exit from Idea Cellular as it had allegedly flouted licence conditions. They also sought a probe into Tatas acquisition of shares in Idea Cellular through a Mauritius-based company without taking permission from DoT. The Tatas, on the other hand, have asked DoT not to interfere since it was a dispute between shareholders and not a licensing issue.
More Stories on : Corporate Disputes | Regulatory Bodies & Rulings | Telecommunications
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