In June Mukesh Ambani threw in a major glitch, alleging that his Reliance Industries has the “right of first refusal” over any change of control in Reliance Communications. Under structures that were being discussed, Reliance Communications could have been majority acquired by MTN. The threat is very real because Mukesh Ambani could attempt to wield the "right-of-first-refusal issue" over any negotiation involving a change of control in the company. Mukesh's empire includes everything from petroleum to power and textiles.
This eventually doomed the merger talks between Reliance Communications, one of India's largest wireless companies, and MTN, Africa's biggest telecom company. A deal between MTN and Reliance Communications would have created a company with a stock-market value of about $50 billion and 110 million customers from South Africa to India. It would have been India's largest-ever overseas deal, and established Anil as the standard bearer for India's international expansion, at a time when many Indian companies are seeking to parlay strong economic growth at home into deals abroad.
What will the recourse from Anil Ambani be in future to pay back Mukesh Ambani? I’m still guessing. One thing is for sure, this ugly sibling skirmish is not going to end very soon.
This eventually doomed the merger talks between Reliance Communications, one of India's largest wireless companies, and MTN, Africa's biggest telecom company. A deal between MTN and Reliance Communications would have created a company with a stock-market value of about $50 billion and 110 million customers from South Africa to India. It would have been India's largest-ever overseas deal, and established Anil as the standard bearer for India's international expansion, at a time when many Indian companies are seeking to parlay strong economic growth at home into deals abroad.
What will the recourse from Anil Ambani be in future to pay back Mukesh Ambani? I’m still guessing. One thing is for sure, this ugly sibling skirmish is not going to end very soon.
1 comment:
This is based on an extract from The Hindu and was also in the papers recently. so i am sure you have read about this earlier.
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