RIL again writes to RCOM, MTN; seeks talks before arbitration
Mukesh Ambani-led RIL shot off another letter to RCOM and MTN, who are negotiating a USD 70 bn merger deal, invoking non-compete agreement.business Updated: Jul 03, 2008 22:48 IST
The fight between the Ambani siblings flared up, with Mukesh Ambani-led RIL on Thursday shooting off another letter to RCOM and MTN, who are negotiating a USD 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," an RIL spokesperson said.
Reacting to the latest RIL missive, an RCOM spokesperson 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.
An MTN spokesperson from Johannesburg, however, declined to comment on the communication, as also on reports that it is extending the exclusivity agreement for negotiation with RCOM.