One of the new Indian operator, Datacom’s hide and seek with its woes continue to go on. The frequent emergence of speculations about the company coming closer to a resolution for the ongoing management control has become a common practice. And keeping with the tradition, there is fresh speculation of the two parties i.e. Videcocon Group’s Dhoot and HFCL group’s Nahatas having agreed to a settlement wherein Videcocon group will buy out the 36 percent stake of the Nahata camp in Datacom. The deal is valued at Rs 1,200 crore.

The new deal value is considered to be lower than the earlier Rs,1360 crore speculated to be offered by Dhoot to Nahata. It was reported that Nahata camp was eyeing Rs 2,116 crore to exit at that point of time. The new offer is believed to be a kind of compromise by the Nahata camp on the back drop of the global financial meltdown.

The parties involved however maintain that the company is working as per status quo i.e. the day-to-day operations being managed by Rajkumar Dhoot.

In fact Mahendra Nahata said to Wall Street Journal, “It’s a completely wrong news. I am planning to issue a joint statement with Dhoot. I am not looking at exiting the company.”

The management control issues came into light when the Nahata camp alleged that it was not kept in the loop in decision making processes of the company. The allegation was refuted by the Dhoot camp. The issues led to mass exodus with top executives including popular names like Ravi Sharma, the CEO of the company leaving the company.

Datacom is also reported to have entered into a MoU with Huawei for purchase of equipment.