India's Zee Entertainment urges Sony to restore blockbuster merger, sues over termination

Indian media conglomerate Zee Entertainment on Wednesday said it urged Sony to revive their blockbuster merger and has sued the Japanese tech giant over the deal's termination.

Sony earlier this week called of the transaction with Zee Entertainment, which is reported to be worth $10 billion.

A major media presence in India, Zee owns several TV channels, a movie studio and a streaming service locally.

Sony is seeking a $90 million breakup fee from Zee over the collapsed merger, according to Zee, which said the company is pursuing this sum due to "alleged breaches by ZEEL [Zee Entertainment Enterprises Limited] of the terms of [merger cooperation agreement], invoking arbitration and seeking interim reliefs against ZEEL."

In a filing, Zee said it denies that Sony is entitled to call off the merger agreement and that its claim for a termination fee is "legally untenable and has no basis whatsoever."

Sony is "in default of their obligations to give effect to and implement the Scheme," Zee said, adding that it calls on Sony to withdraw its termination and to confirm that it will respect its obligations by coming back to complete the deal.

Sony's European representatives were not immediately available for a comment when contacted by CNBC on Wednesday.  

Zee was reportedly unable to seek a penalty fee over the deal termination, because of the time point when Sony called off the transaction.

On Wednesday, the Indian media firm said that it "categorically refutes all claims and assertions made by Culver Max and BEPL regarding alleged breaches of the MCA by the Company, including their claims for the termination fee, and reserves all its rights in this matter."

The company said it is "evaluating all available options and basis the guidance