NEW DELHI: There are early signs of a bloody revival of war between the Ambani brothers, with Anil Ambani’s Reliance Communications’ merger talks with South Africa-based telecom giant MTN the fodder for a fresh fight.
Late on Friday evening, news trickled out that Mukesh Ambani-led Reliance Industries Ltd (RIL), which had reluctantly parted with its telecom business when the brothers split, had written to the MTN board informing them about a clause in the family settlement which reserves first right of refusal for Mukesh Ambani or his companies.
RCOM retaliated almost immediately with a scathing statement, saying, ‘‘Last night, in a mala fide effort to disrupt talks, RIL, part of the Mukesh Ambani Group, has sent a communication to MTN Group, making a false claim of an alleged right of first refusal to buy controlling stake in RCOM. Not surprisingly, RIL has sent the letter to RCOM only today, that is after a gap of 24 hours.’’
RCOM goes on to say, ‘‘RIL’s claim is legally and factually untenable, baseless and misconceived...It is born out of mounting despair and frustration at Reliance ADA Group’s continuing successes...RIL is seeking to disrupt the creation of one of the world’s most valuable telecoms combinations, which will make over a billion Indians proud of our great country.’’
‘‘RIL’s actions are clearly anti-consumer, anti-investor and anti-globalization, and against the vision...of Dhirubhai Ambani. RCOM dismisses RIL’s claims with the contempt it deserves.’’
An RCOM spokesman said RIL’s claim was based on an agreement of January 12, 2006, which was unilaterally signed by RIL’s officials on behalf of both RIL and RCOM when RCOM was under RIL’s control, under a procedure which the Bombay high court later held to be ‘‘unfair and unjust’’.
An RIL spokesperson said RIL had in ‘‘good faith’’ notified both ADAG and MTN of the stipulations contained in the agreement, ‘‘the validity of which has so far not been questioned by ADAG.’’
Couretsy:timesofindia.com
Complete artical HERE
Saturday, June 14, 2008
Ambani brothers at war again
Labels: Reliance
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4 comments:
Mukesh Ambani is simply making a big noise over nothing.Its just a jealous older brother trying to hamper a prosperous younger brothers growth. The claims made by Reliance Industries Limited are baseless and were based on an agreement in 2006, which was signed only by Reliance Industries officials and was later overturned by the Bombay High Court.
This deal would would create one of the world’s largest emerging-markets telecom operators with 115m subscribers spread across Africa, India and the Middle East.
I wish the ADAG group all the luck.
Also, i came across this interesting blog http://mukesh-ambani-big-bully-brother.blogspot.com which gives an actual story.
This new clash of interests between the brothers seems to be baseless, the reason i say this is because some years ago Mukesh's claim to another Anil project was shot down and this time again i see no reason for it to hold water.
on the other hand the deal between Anil and MTN is so lucrative to both him as well as the Indian telecom market. so i just keep wondering why Mukesh is hindering this progress. he should quit thinking about personal gain and for once look towards the benifit and progress of the nation as a whole.
Mukesh is just acting silly and naive... by now he should have understood what this MTN deal will mean to India as a whole. however his disregard towards the benifits with the sole intention to derail this project just proves his business sense and ethics. besides with MTN now extending the exclusivity period Mukesh should definitely think again and withdraw....
Mukesh is just acting silly and naive... by now he should have understood what this MTN deal will mean to India as a whole. however his disregard towards the benifits with the sole intention to derail this project just proves his business sense and ethics. besides with MTN now extending the exclusivity period Mukesh should definitely think again and withdraw....
the mtn deal with rcom is certainly something. i hope that this will come true and uplift the flagging india telecom industry. the only problem here is Mukesh. he's like a perpetual thorn in Anil's side, no matter where Anil goes or what he does Mukesh is just two steps behind to poke him.
mukesh if you know even a squat of business sense you will pull back unless you want to fund your new billion dollar house construction with the spoils you derive from this war. apart from this its really disheartening to see such naive sibling rivalry.
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