In the latest development in the Tata-Birla conflict over the shareholding in Idea Cellular, the Tatas have served a termination notice on the Aditya Birla Group for “breach of shareholders’ agreement”.
Aditya Birla Nuvo had, on its website, disclosed information regarding Idea Cellular’s revenue, profit before dividend interest and tax, operating margins, net profit, loss, annuallised return on capital employed and projections. The Tatas contend that by disclosing financial data of Idea Cellular to Nuvo’s investors, the Birlas had committed a material breach of the Idea shareholders’ agreement. The Tatas now want to buy out the Aditya Birla Group’s stake in Idea. In response, the Aditya Birla Group has informed DoT that there was not an “iota of substance” in the termination notice served by the Tatas, and that it was “an attempt to divert attention” from the real issues.
