Subhash Chandra appeals to Finance Minister over Sony merger: Reports

Zee Entertainment's founder, Subhash Chandra, made a last-ditch effort to salvage the company's $10-billion merger with Sony Pictures by appealing directly to Finance Minister Nirmala Sitharaman, say media reports. In a letter sent a week before the deal's collapse on January 23rd, Chandra urged the minister to intervene and "safeguard the interest of Zee Entertainment's minority shareholders."

The letter raises concerns about alleged attempts to derail the merger, highlighting what Chandra sees as suspiciously timed investigations by the Securities and Exchange Board of India (SEBI). While acknowledging SEBI's right to investigate, Chandra questions the timing of a new notice issued just ahead of the crucial merger vote. He emphasizes that the notice raises no new points but simply reiterates information already provided to SEBI.

This move suggests Chandra believed external forces were hindering the merger, potentially impacting the interests of minority shareholders who stood to benefit from the deal. His appeal to the Finance Minister underscores the high stakes involved and the desire to protect shareholder value.

Whether the letter played a role in the merger's ultimate downfall remains unclear. However, it sheds light on the internal friction and concerns surrounding the deal, particularly regarding potential regulatory hurdles and their timing.