India's Future Group stocks lose ground after Amazon's legal notice

Future Lifestyle Fashions

08/10/2020 05:52

** Future Group stocks  FURE.NS ,  FRTL.NS ,  FTRE.NS ,
 FUTE.NS ,  FLFL.NS  slide between 5% and 9.64% 
    ** Amazon.com Inc  AMZN.O  says it has sent a legal notice
to a promoter of Future Group, alleging the Indian retailer
breached the terms of its contract by signing a deal with Mukesh
Ambani's Reliance Industries  RELI.NS  urn:newsml:reuters.com:*:nL4N2GY2U4
    ** Reliance said in August it would buy the retail and
wholesale business as well as the logistics and warehousing
business of Future Group in a deal valued at $3.38 bln
 urn:newsml:reuters.com:*:nL3N2EZ2C
    ** Amazon last year acquired a 49% stake in Future Coupons
Ltd, the promoter entity which owns a 7.3% interest in Future
Retail 
    ** Shares of Future Retail slip as much as 9.35% to 80
rupees, their lowest since Sept. 25; Future Supply Chain
Solutions falls 8.44% to see its worst intraday session since
March
    ** Amazon's investment in Future Group came with contractual
rights that include a right of first refusal and a
non-compete-like pact, a source told ET Now, which first
reported the news
    ** Shares of Future Supply Chain Solutions down ~80% YTD, vs
a 46%-77% drop in other Future Group stocks
    ** Reliance Industries' shares down 0.28% on Thursday at
2,250.45 rupees amid a broader rally in Indian equities  .BO 

 (Reporting by Chandini Monnappa in Bengaluru)
 ((Chandini.M@thomsonreuters.com; 910867497919;))