Rumbling discontent

The Memorandum of Understanding between PricewaterhouseCoopers (PWC) and RS Mama (RSM) for a proposed merger of their tax and audit business has run into a spot of trouble, say informed insiders. Although Ashok Wadhwa of Ambit would still walk away with Rs 40 crore out of the total deal size of around Rs 80 crore, it is the integration of RSM’s team into PwC that is getting sticky. Sources say that PwC Global is reluctant to fund the acquisition and PwC India may then have to pay the tab from the Indian entity's books — but this would mean that the RSM team would have ended up paying for their own acquisition. Worse, RSM is apparently prevented by newly framed governance rules from putting up a candidate for either Partner Oversight Board (POB) or Senior Partner election. Those who have been elected to the POB include Sanjay Hegde, Sharmila Karve, Bimal Tanna of Mumbai, Rahul Mitra, Raja Sengupta of Kolkata, Jayanta Mazumdar of Bangalore and Vivek Mehra. Delhi has been routed with three persons losing out. Our sources say that both sides are working hard to find solutions and ensure smooth integration. Among them is Ashok Wadhwa, who is probably the biggest gainer in the deal even if he walks away alone.

Certify users

The drop in long distance telecom charges, access deficit charge and roaming charges ought to have caused jubilation among telecom users. Instead, check various internet meeting spaces and you will only find anger at the manner in which telecom companies are continuing to harass customers and disconnect phones over the customer verification process mandated by the telecom regulator.

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