Saturday, February 25 2006 12:39 Hrs (IST) - World Time -

New Delhi: Intensifying their attack on Tatas on the issue of stakeholding in joint venture Idea, Birlas shot off yet another letter to the government alleging that the former had not disclosed acquisition of AWS of Mauritius in the venture.

But Tatas 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 and will respond to Birla's second missive in a day or two, sources in the know said.

Following up its communication earlier this month, A V Birla group wrote to Department of Telecommunication that Tatas were not complying with the licence conditions and they should be asked to expeditiously bring their stake in Idea to below 10 per cent from over 48 per cent 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 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 Tata's holding in Idea, where Birlas have the first right of refusal at a mutually agreed price.

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