FLAG tells VSNL to pay $406 mn in damages

The long-standing dispute between Tata-controlled Videsh Sanchar Nigam Ltd (VSNL) and Anil Ambani’s FLAG Telecom over the FLAG Europe-Asia cable system has worsened, with FLAG moving the International Chamber of Commerce (ICC) seeking “monetary relief” of $406 million, plus interest, from VSNL.

On Tuesday, VSNL told BSE that it had received communication from FLAG seeking compensation. VSNL will study the claim and file its response with ICC “in due course as per the schedule finalised by the tribunal.” Responding to the news, VSNL stock plunged 3.4 per cent on Tuesday on the BSE to end the day at Rs 488.50.

The dispute between the two companies began a few years ago when VSNL resisted attempts by FLAG to upgrade the capacity of its FLAG Europe cable. FLAG also claimed that landing charges levied by VSNL were not reasonable.

RComm raises $1bn through FCCBs

MUMBAI: Reliance Communications (RComm) on Tuesday said it has raised $1 billion (Rs 4,400 crore) through an offering of Foreign Currency Convertible Bonds (FCCBs) in international markets. This is the highest amount raised through an FCCB issue by any Indian corporate entity.