DoT may reconsider Etisalat DB-Allianz merger proposal
Press Trust Of India / New Delhi Nov 12, 2009, 00:52 IST
The Department of Telecommunications may relook at mobile operator Etisalat DB’s proposal of merging new player Allianz Infratech with itself, as it now feels the deal does not involve sale of equity, which is barred for three years.
DoT in October this year rejected a proposal from UAE-based Etisalat DB Telecom to merge Allianz Infratech with itself. It shot down the proposal on the grounds that there is a three-year lock-in on sale of equity by new operators.
“This arrangement appears to deal in no way with merger of companies which is in fact the issue of the present reference of the DoT. Merger as well as demerger of companies take place according to the provisions of the Companies Act, 1956. Accordingly, the DoT may give a re-look regarding their draft proposal. The lock-in period clause deals with sale of equity of person as a substantial shareholder", said the note.
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