Sunday July 20, 02:26 AM
Anil firm talks of right to claim damages
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By ENS Economic Bureau
The tussle between the Ambani brothers on the MTN issue is far from over. A day after Reliance Communications's (RCOM) talks with South African telecom operator MTN failed on Friday, with both sides mutually deciding to allow the exclusivity agreement to lapse, AAA Communications, Anil Dhirubhai Ambani Group's (ADAG) investment arm, has replied to Reliance Industries Ltd (RIL) saying it is not covered by any alleged right of first refusal (RoFR) to RIL and was free to deal with RCom shares as it deemed fit. It has also said it reserves the right to claim "direct and consequential damages" from RIL. AAA Communications holds 63 per cent in the total 66 per cent stake of the group in RCom. AAA Com's reply to RIL says it is not party to any alleged non-compete agreement dated January 12, 2006 with RIL. It has further added that the alleged agreement between RIL and RCom is in no situation binding on AAA Com. AAA Com's shareholding in RCOM is not covered by any alleged right of first refusal to RIL. AAA Com has said it is "free to and shall deal with RCOM shares" as it deems fit. Calling RIL's actions "uncalled for, offensive and clearly motivated", it said RIL's "malafide interference" caused significant harm to AAA Com as substantial RCOM shareholder. "AAA Com reserves right to claim direct and consequential damages from RIL," it said. RIL officials were not available for comments. RCOM's talks with MTN were called off a day after RIL announced it was proceeding with arbitration on the issue. RComm and AAA Com had earlier filed caveats in Bombay High Court in order to prevent an ex-parte decision being made should RIL move the courts. The non-compete agreement of January 12, 2006 is at the heart of the dispute between the warring Ambani groups. While RIL has claimed RoFR under this agreement, ADAG claims it does not recognize the pact since RCOM was at the time controlled by Mukesh Ambani's representatives. WHAT ADAG SAYS • AAA Communications, an ADAG investment arm, holds 63% in the total 66% stake of the group in RCom • AAA Com is not covered by any alleged right of first refusal (RoFR) to RIL • RIL, RCOM agreement not binding on AAA Com • RIL's "malafide interference" caused significant harm to AAA Com
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