Ambani bros indulge in legal shadow-boxing

The spat between the warring Ambani brothers over the South African telecom giant MTN turned into a game of legal shadow-boxing on Monday with offers and counter offers for discussions being spurned on both sides. Wary of falling into a legal 'trap', Anil Ambani's RCcom rebuffed an attempt by elder brother Mukesh-led RIL to open talks for conciliation on Monday over the issue of right of first refusal in RCOM's efforts to amalgamate with MTN, said to be worth over $50 billion. Top legal and financial brass of RIL turned up at a five- star hotel in Mumbai at 11 am in follow-up to their company's offer, made last week as part of arbitration clause in the non-compete agreement between the two groups, to open conciliation talks with RCom. After sipping coffee during about an hour wait, the officials left unhappy that the other side did not have a courtesy to even inform that they were not turning up. The legal manoeuvring picked up pace thereafter with RCom proposing a 'clarificatory' meeting next week, making it clear this would not constitute any conciliation or dispute resolution mechanism, a process the company wants to avoid. RIL, in turn, lost no time in rejecting this proposal and instead threatened legal action against RCom, whose infuriated spokesperson said that this was the third such threat from the elder Ambani's RIL. Going public with RCom's anger, he said, "RIL's mala fide stand (has been) clearly established. RIL has within hours spurned our offer to meet in week of July 14." Asked as to why RCom did not go for the conciliation talks on Monday as offered by RIL, he said, "We have invited them for talks next week, but only for clarifications." RCom alleged that RIL was not interested in understanding the facts and its sole aim was to derail talks with MTN. "RIL is not interested in understanding factual position or clarifying its doubts. RIL's sole objective (is) to derail talks with MTN and frustrate a possible combination," the RCom spokesperson said. In its offer for meeting in week of July 14, which comes after RIL last week invoking arbitration clause under non- compete agreement and asking RCom to start conciliation as part of process, RCom said the meet would not constitute to any conciliation or dispute resolution process. Debunking RIL's claim of right of first refusal as "legally and factually untenable and misconceived, RCom, whose exclusivity agreement with MTN for talks, is coming to end tomorrow, said the "meeting is not part of conciliation or dispute resolution mechanism". RCom is understood to have said that neither there was any dispute nor occasion for conciliation process and the company reserved its rights to take all actions as legally advised. RCom had announced on May 26 the start of 45-day exclusive negotiations for a possible deal with MTN. However, the deal has been hit with uncertainties after RIL sent a communication to MTN and RCOM claiming its first right of refusal over a majority stake in Anil Ambani-led telecom firm and threatened legal action if its rights were breached by the deal. However, RCom has been contesting these claims, terming them as "factually and legal untenable." In the midst of the feud between the two brothers, Anil Ambani group last week also sought a probe by market regulator SEBI in hammering down of shares of RCom and other group companies, while charging RIL of trying to disrupt a possible deal with MTN. By Ms.Bobby Aanand, Metropolitan Jury.

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