Mukesh begins arbitration over Anil-MTN talks
The fight between Ambani brothers moves into a new arena with Mukesh Ambani-led RIL deciding to “commence arbitration” against Anil Ambani controlled RCom, reports Indulal PM.india Updated: Jul 18, 2008 00:51 IST
The fight between Ambani brothers is moving into a new arena. Mukesh Ambani-led Reliance Industries (RIL) has decided to “commence arbitration” against Anil Ambani controlled Reliance Communications (RCom) over the latter’s merger talks with Johannesberg-based telecom firm MTN.
Anil Dhirubhai Ambani Group’s (ADAG) negotiations for a potential merger deal with MTN hit a roadblock after RIL wrote letters threatening to block any stake sale in RCom that doesn’t give it an opportunity to buy the shares.
RIL has nominated Justice BP Jeevan Reddy, a former judge of the Supreme Court, as an arbitrator to resolve the disputes with RCom. “RCom has refused to participate in the conciliation meetings under the alternate dispute resolution provisions contained in the non competition agreement,” an RIL spokesperson said.
Arbitration is a legal procedure for a resolution of disputes outside the courts. The disputed parties refer it to one or more persons by whose decision they agree to be bound. Last year, the takeover battle between Jet Airways and Air Sahara was settled through arbitration.