A provincial chief in Fiji has reportedly said he will not apologise after being threatened with legal action by Denis O'Brien and Digicel.

Last month the new chairman of Fiji's Ba Provincial Holding Company, Ratu Tevita Momoedonu, said there would be bloodshed if the proposed involvement of Digicel in a deal on the island went ahead.

Mr Momoedonu said a potential deal involving Digicel in Ba would lead to division and violence. He reportedly sought the support of the president of Fiji for the removal of some Digicel representatives from Fiji. The request was not acceded to.

Mr Momoedonu's comments about the potential for bloodshed are reportedly being investigated by the Fijian police. He has been accused to trying to derail the deal with Digicel.

In a letter to the Ba chairman, Mr O'Brien warned legal action would be taken if an apology was not forthcoming by yesterday.

In his letter Mr O'Brien said Mr Momoedonu's comments and those of Ba Provincial Holdings had been outrageous and defamatory, and had damaged Digicel's world-class reputation.