ADAG shaves off 40% m-cap amid MTN talks | business | Hindustan Times
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ADAG shaves off 40% m-cap amid MTN talks

The Anil Ambani group sought a probe by market regulator SEBI alleging rivals were hammering down the shares of RCOM and its other companies.

business Updated: Jul 04, 2008 18:08 IST

In the middle of its fight with Mukesh Ambani-led RIL, the Anil Ambani group on Friday sought a probe by market regulator SEBI alleging rivals were hammering down the shares of RCOM and its other companies.

The ADAG, whose firms have lost a whopping 40 per cent wealth totalling over Rs one trillion since starting talks for a deal with South African telecom giant MTN, also alleged in its letter to SEBI that RIL was attempting to derail the negotiations.

ADAG sources said that a communication has been sent to SEBI in which the group has charged RIL with desperate attempts to derail discussions with MTN and has also accused rivals of market abuse to impact valuations.

The complaint comes a day after RIL fired another salvo asking ADAG to come forward for "mutual conciliation" before start of arbitration process.

"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," RIL said in a late night statement on Thursday.

The second communication by RIL, after its first letter asserting right of first refusal on any stake sale, could cast a shadow on negotiations between MTN and RCOM, both of whom are seeking to extend the 45-day exclusivity agreement that ends on July 8 for talks for the deal.

This is the third time the ADAG has moved SEBI in less than a year complaining foul play. Ahead of the IPO for Reliance Power, ADAG had previously listed over a dozen top officials and associates of RIL charging them of sabotaging the public offer.