Has Reliance Communications disclosed enough on Aircel merger?

Proxy firm feels valuation details inadequate; firm says report follows accepted methodologies

The proposed merger of telecom giants Reliance Communication (R-Com) and Aircel has triggered a debate over the kind of disclosures necessary on the valuation of companies.

R-Com, the listed firm belonging to the Anil Ambani group, proposes to demerge its telecom business and transfer the same to Aircel. After this, the company will own a 50 per cent stake in Aircel. As required under law, the company has obtained a valuation report from an independent valuer and disclosed it. The court-convened meeting to approve the proposal is coming up next week.

However, proxy advisory firm Stakeholders' Empowerment Services (SES) is