Friday, July 4, 2008

RIL Sends Fresh Letter To RCOM, MTN - July 4, 2008

The fight between the Ambani siblings flared up, with Mukesh Ambani-led RIL on July 3 shooting off another letter to RCOM and MTN, who are negotiating a $70 billion merger deal, invoking non-compete agreement.

RIL has invoked the provisions of dispute resolution contained in the non-competition agreement dated January 12, 2006, and has invited RCOM to participate in the process of mutual conciliation prior to commencement of formal arbitration. Reacting to the latest RIL missive, an RCOM said, The second letter from RIL is a sign of desperation and frustration.

The latest RIL communication, a follow up of the letter asserting its Right of First Refusal on majority stake in RCOM, could put up another obstacle in the ongoing negotiations between the South African and Indian firms.

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