Ambani brothers in MTN saga
Tue, 17 Jun 2008 09:33Keep an eye on MTN this morning as the Reliance takeover saga starts to resemble something of a soap opera. Shares in Reliance dropped more than 2% at one stage this morning as the ongoing feud between chairman Anil Ambani and his brother, Mukesh, heats up. Reports suggest that Reliance chairman Anil Ambani is thinking about taking a controlling stake in MTN. Ambani would need to convince MTN shareholders to waive their right to a tender offer. He would then have to swap most of his 66% shareholding in Reliance for a controlling stake in the enlarged group.
But Ambani's brother, Mukesh, has threatened to take legal action. He claims he has a right of first refusal to a controlling stake in Reliance Communications. Mukesh runs energy group, Reliance Industries. The company claims it made an agreement allowing it the right of refusal when it still controlled Reliance Communications. Sources say Reliance Communications is now ready for a legal battle.
