Idea row: Birlas step up attack, Tatas hold ground

Intensifying their attack on the Tata group on the issue of stakeholding in their joint venture Idea, the A V Birla group has shot off yet another letter to the government alleging that the former had not disclosed the acquisition of AWS of Mauritius in the venture.

Tatas, however, are holding their ground that they are not under any such obligation, and would sell their equity at an appropriate time for a fair value. Sources in the know said the group will respond to Birlas' second missive in a day or two.

Following up its communication earlier this month, the A V Birla group wrote to the department of telecommunications that Tatas were not complying with the licence conditions, and they should be asked to expeditiously bring their stake in Idea to below 10% from over 48% now.

Tatas had acquired the equity of Mauritius-based AWS in Idea through their wholly-owned subsidiary AT&T Cellular in September last year, sources said, wondering as to why the acquisition of foreign equity belonging to Cingular by Birlas had not become an issue earlier.

Industry sources feel that the two oldest corporate groups in India are clashing possibly over the valuation of Tatas' holding in Idea where the Birlas have the first right of refusal at a mutually agreed price.

Tatas are scouting for buyers and are believed to be in talks with a number of players including Maxis, but no confirmation was available.