RIL starts arbitration process against RCOM - Bitter feud between the brothers continues

By Harsha Pramod @ Friday, July 18, 2008 11:59 AM

Section - Business/Legal

Reliance Industries Ltd (RIL), led by Mukesh Ambani, has begun an arbitration process against Anil Ambani's Reliance Communications (RCOM), which is discussing a merger deal with MTN, reports the Business Standard.

RIL is upset about being denied the first right of refusal for RCOM shares. RIL has nominated Justice B P Jeevan Reddy, a former judge of the Supreme Court of India, as an arbitrator to resolve the dispute.

The feud between the brothers became heated following an exchange of letters between the brothers about the first right of refusal. RIL blamed RCOM for not participating in the conciliation meetings.

RCOM states that the decision is unilateral, and the company will stick to its earlier stance. The deadline for exclusivity for discussions between MTN and RCOM is July 21. RIL maintains that it is left with no other choice but to iniate legal proceedings against RCOM. X

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