BHARTI-WALMART IN TIGHT CORNER, EXECS TOLD NOT TO TRAVEL OUT

NEW DELHI: The cash-and-carry joint venture (JV) between the Bharti Group and Us-based Walmart may be heading towards difficult times. Bharti Walmart has told its senior officials not to travel outside over the next few days and be present at its Gurgaon office. This indicates that there may a big announcement in the next few days.

Earlier, there were reports that the 50:50 joint venture may be heading towards a split.

The two companies, however, were silent on any big announcement in the next few days.

“We have made no announcements and don’t comment on rumours or speculation,” a spokesperson of Walmart India said. “India is an important market for us and we continue to study the implications of the new FDI (foreign direct investment) policy on our business.”

What fuelled the rumours of a split was an announcement by Walmart on Monday seeking an extension to defer conversion of its $100 million compulsory convertible debentures (CCD) into equity in the holding firm of Bharti Retail.

“As permitted by law, we have filed for an extension of the conversion date for the compulsory convertible debentures. We have nothing further to share at this time,” a Walmart spokesperson, who did not wish to be identified, said on Tuesday.