Reply to our ‘legal letter’, says Mukesh
The war between Ambani brothers continues as Mukesh Ambani's RIL writes to MTN and its bankers that it has the first right to buyout the promoters. HT reports.business Updated: Jun 16, 2008 03:05 IST
The war between Ambani brothers continued on Sunday over the proposed merger between Anil Ambani-controlled Reliance Communication Ltd (RCom) and South African telecom major MTN that could create a $70 billion trans-continental telecommunications giant.
Mukesh Ambani controlled Reliance Industries Ltd (RIL) has written to MTN and its bankers that it has the first right to buyout the promoters – throwing the deal into jeopardy.
According to PTI a team from MTN has travelled to India on Saturday. Other sources claimed that MTN's legal team is arriving on Monday. Sources close to Anil Ambani's ADAG said that no such team from MTN is coming to India.
Official spokespersons for both RIL and RCom did not offer any comments.
However, RCom sources refuted that RIL had any right over the promoter's equity in the company. They said on Sunday that any such right needs to be a part of the articles of association (AOA) of RCom and nothing of the sort is there. They also pointed out that even if it is a part of AOA, it would contravene the Section 111A of the Companies Act, 1956.
Meanwhile sources in the Mukesh Ambani camp asked why Anil's side isn't responding in writing to a "legal letter" written by RIL. They said that the Anil Ambani Group should write to all the bankers involved in the deal stating that there is no such right with RIL.