  While the legality and validity of the first right of refusal claims made by Mukesh Ambani’s Reliance Industries, remain to be confirmed, the move has definitely created ruffles in the ongoing talks between Reliance Communications and MTN which till now are reported to have reached to advanced level.
RIL issued a statement that in case MTN ignores the caution from RIL regarding first right of refusal and goes ahead in signing the deal with RCom, the SA operator will be treated as party involved in violation of the clause and will be liable for relevant damages to be sought.
This seems to have forced the MTN group to take the threat seriously since according to reports, the group has dispatched a team to India to study the claims as well conduct talks with RCom. Some reports though add that the executives from MTN are part of the due diligence process to be completed for RCom-MTN merger. |