Zee-Sony India merger talks stall over disagreement on management – Mint

BENGALURU, Nov 10 (Reuters) – Talks of a merger between India’s Zee Leisure Enterprises (ZEE.NS) and Japan’s Sony’s (6758.T) Indian arm have stalled after a conflict on which firm’s prime government will run the merged entity, the Mint enterprise day by day reported on Friday.

Sony is pushing for its Indian operations managing director N.P. Singh to move the merged firm, as Zee’s candidate, managing director Punit Goenka faces an on-going investigation, the report mentioned, citing individuals conscious of the matter.

Zee and Sony India didn’t instantly reply to Reuters’ requests for remark.

An Indian tribunal final month lifted a ban on Goenka holding board positions in Zee Group firms, however mentioned that he should cooperate with any investigation by India’s markets regulator.

The Securities and Trade Board of India (SEBI) had in June alleged that Goenka and Zee Group Chairman Subhash Chandra had been actively concerned in diverting firm funds.

Each Goenka and Chandra have denied any wrongdoing.

A failure to achieve an settlement on management by Dec. 21 might derail the merger, the Mint report mentioned.

In September, Sony had introduced a delay within the merger, saying it anticipated completion “throughout the subsequent few months”.

Final month, rival Disney (DIS.N) was reported by Bloomberg to be nearing a deal to promote its India operations to Reliance Industries (RELI.NS).

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