Archive for the ‘Ambani’s’ Category

Anil ambani’s dream ends, talks with MTN called off

July 19, 2008

Anil Ambani’s Reliance Communications (Rcom) and South African telecom giant MTN on Friday announced they were calling off talks aimed at creating a $66 billion telecom group.

“The two sides were unable to conclude the transaction due to certain regulatory issues,” said a RCOM spokesperson in a statement.

MTN and Reliance Communications started exclusive talks on May 26 and the deadline was extended to July 21.

The extension, announced on July 10, came after a claim on shares in RCom by Mukesh Ambani, estranged brother of RCom chief Anil Ambani, and a sharp drop in share prices created obstacles to completing a deal by the original deadline of July 8.

A deal would have created a $66 billion emerging markets telecom group with operations in about two dozen countries and around 120 million subscribers. When the talks began, MTN had a market capitalisation of $38 billion and Reliance Communications was worth $28 billion, but a sharp slide in markets has eroded valuations.

Mukesh’s Reliance Industries Ltd (RIL) last month wrote to MTN saying that it has right of first refusal over a sale of controlling stake in RCom. Effectively, what Mukesh’s group has said was that any sale of a controlling stake in Reliance Communications to anyone but Reliance Industries was illegal.

MTN in a statement to Johannesburg Stock Exchange said, “With regard to exclusive negotiations relating to a potential business combination between MTN and RCOM, owing to certain regulatory issues, the parties are unable to conclude a transaction. Accordingly, it has been mutually decided to allow the exclusivity agreement to lapse.”

RIL was not immediately available for comments.


A history of RCom, MTN talks.

  • May 13: Bharti says in exploratory talks with MTN
  • May 16: Bharti- MTN reach ‘in-principle’ agreement and a term sheet initiated between two lead bankers
  • May 21: MTN board meets to consider term sheet. MTN proposes alternate model where Bharti becomes its subsidiary
  • May 24: Bharti announces that talks with MTN have been called off
  • May 26: RCOM and MTN enter into 45-exclusivity perod for talks to combine both telcos
  • June 14: Mukesh Ambani’s Reliance Industries (RIL) entrs fray — claims the first right of refusal in case of sale or change of management of of RCOM
  • July 3: RIL calls RCOM for mutual conciliatory talks before initiating formal arbitration
  • July 7: RIL says no RCOM representative had turned up for a meeting with RIL
  • July 7: RCOM invies RIL to meet in the week beginning July 14 “to clarify any doubts” on the deal structure being discussed with MTN
  • July 8: 45-day exclusivity period ends
  • July 9: RCOM -MTN decide to extend exclusivity period till July 21
  • July 17: RIL starts arbitration proceedings against RCOM
  • July 18: RCOM and MTN allow exclusivity period to lapse; end talks

Courtesy :- IBN Live


Mukesh Ambani may foot international faculty salaries at IIM-B

July 16, 2008

Chairman and managing director of Reliance Industries , Mukesh Ambani is understood to have expressed interest in footing the salary bills of international faculty at the Indian Institute of Management, Bangalore.

A source said Ambani, who is on the governing board of the premier IIM, had emphasised that the institute should recruit international faculty to become world class at the institute’s recent board meeting.

“The board discussed hiring international faculty but we have not yet worked out a detailed plan on this front. We will be taking a call on the issue in the next couple of months and could put a proposal in front of all board members,” said a board member.

The institute could also approach the board members to raise funds for the purpose.

Last year, Mukesh Ambani, who is also an alumnus of the Stanford Graduate School of Business, had sponsored a GSB and IIM-B student exchange programme under which 16 students of the institute visited Stanford on a seven-day trip.

“Sponsoring the recruitment of international faculty could be another step towards raising IIM-B’s international portfolio and international research,” added the source.

None of the seven IIMs has international faculty on their rolls. Last year, IIM-Ahmedabad was in talks with an international professor but the deal fell through.

For IIMs, recruiting and retaining international faculty is a challenging affair.

“Though we always welcome visiting faculty, we find that they do not want to stay on a permanent basis on campus. However, NRI faculty, who have been working with universities abroad do show interest in joining us,” said a professor from IIM Calcutta. Two new NRI professors have joined IIM-C from the UK.

A major hindrance in attracting international faculty to IIMs is the salary. At any IIM, an assistant professor’s monthly income is anywhere between Rs 35,000 and Rs 40,000 (it varies depending on the consultancy fee from corporate assignments). An associate professor’s monthly income is Rs 40,000-45,000 and a professor’s around Rs 54,000.

Conservative estimates peg a professor’s salary in the US at anywhere between $4,000 (around Rs 180,000) and $5,800 (around Rs 261,000) per month. This income is over and above consultancy fees from corporate assignments.

Courtesy :- Business Standard