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RBI Rejects Tata Offer For DoCoMo’s Teleservices Stake

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The Reserve Bank of India (RBI) has rejected Tata Sons’ proposal to pay a price which is higher than the ‘fair value’ to buy out its Japanese partner’s stake in their telecom joint venture after the finance ministry told the central bank to ‘stick to the rules’, leaving the issue to be resolved through arbitration.

Earlier this year, the RBI had sought the finance ministry’s opinion on its proposal to relax a long-standing rule for the Tata Group, which would have allowed the steel-to-IT-telecom conglomerate to pay Japan’s NTT DoCoMo a previously agreed price of Rs 58.045 a share for the latter’s 26% stake in Tata Teleservices (TTSL), which was much higher than an independently determined ‘fair value’ ofRs 23.34 – which is what should be paid as per current rules. Original post at ET Telecom

Wahengbam Rorrkychand

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Website: http://www.blog.tonsetelecom.com

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