BizAsia: ZEE seeks arbitration after failed Sony merger

Story from BizAsia:

ZEE have said it will now look for an Indian arbitration of the merger problems with Sony.

Sony’s earlier request for an emergency arbitration was rejected by Singapore International Arbitration Centre (SIAC).

According to ZEE’s filings to the Bombay Stock Exchange, the Singaporeans decided that it lacked the jurisdiction to prevent ZEE from approaching an Indian tribunal, stating that the merger fell within the responsibilities of the National Company Law Tribunal of India (NCLT).

Even though the emergency arbitrator has rejected Sony’s emergency application Sony could still request arbitration under a more normal timetable.

“We will continue to vigorously arbitrate the matter in Singapore in front of a full SIAC tribunal and pursue SPNI’s (Sony India) right to terminate the merger agreement and seek a termination fee and other remedies,” Sony stated. “We remain confident in the merits of our position in both Singapore and India.”

ZEE has maintained that the $90 million termination fee demanded by Sony as being “legally untenable”, saying there was no basis to it.