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Rediff.com  » Business » Ambanis should settle differences amicably: FM

Ambanis should settle differences amicably: FM

Source: PTI
Last updated on: January 07, 2005 11:57 IST
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The Ambani brothers, Mukesh and Anil, should settle their differences amicably and arrive at a settlement, Finance Minister P Chidamabaram said on Friday.

"We all know there are differences between the two brothers and I would request them to settle their differences within the four walls of their residence," Chidambaram said at the Bombay Stock Exchange when asked about the government stance on the ongoing tussle between the two brothers on the ownership issues of Reliance Group.

Chidambaram said the government did not have any view on the differences between the brothers over the ownership issue and it was for the authorities concerned to look into the matter.

Asked about his meeting with Anil Ambani in Delhi yesterday, he clarified that both the brothers 'meet me from time to time.'

The Ambani brothers' tussle over ownership and control of the Rs 90,000 crore (Rs 900 billion) Reliance empire came out in the open in November when Mukesh said there were ownership issues but they were in private domain.

Ambanis to split: Report

On Thursday, Headlines Today and Aaj Tak, the India Today group's television channels, reported that a 'settlement' of the ownership and management issues between Reliance Industries Chairman and Managing Director Mukesh Ambani and the company's Vice-Chairman and Managing Director Anil Ambani had been arrived at on December 28, the 72nd birth anniversary of the group's founder chairman, the late Dhirubhai Ambani.

The channels said ICICI Bank's Managing Director and CEO KV Kamath acted as the mediator.

The channels also said Reliance Industries would be recast, not split into two. The Ambani brothers, Mukesh and Anil, would go for a legal separation of ownership, which would also involve their two sisters, they added.

According to an Aaj Tak press release, Kokilaben, the mother of the Ambani brothers, played a key role in bringing the two to the negotiating table.

The channels added that 34 per cent of Reliance Industries' equity -- the stake held by the investment companies of the Reliance group -- would be divided equally within the family.

However, another news channel, NDTV, denied the development.

A Reliance Industries executive said he "was not aware of any such move". Kamath was not available for comments.

However, a senior ICICI Bank executive said that Kamath was not playing the role of a mediator. Kokilaben is believed to be in Singapore now with one of her daughters. She left Mumbai after the birth anniversary of the late Dhirubhai Ambani.

Industry observers pointed out that had the settlement been arrived at on December 28, as reported by the TV channels, both the brothers would not have continued their fight through the media till Wednesday. Incidentally, Anil Ambani resigned from the IPCL board as chairman on January 3.

Amar Singh refuses to comment

Meanwhile, Samajwadi Party General Secretary Amar Singh, known for his proximity to Anil Ambani declined to comment on the ongoing feud between the Ambani brothers.

"I will not comment," Singh said when his attention was drawn to reports that the differences between Congress and BJP were having effects on the tussle between the two brothers.

Replying to a query about the Reliance Energy project that has been initiated in Uttar Pardesh, Singh said the project was going on.

"Anil Ambani is still the chairman of Reliance Energy and he has not approached us to say that there is any problem," Singh said adding a deal has been struck between REL and UP government.

He said the on-going developments in Reliance will have

no implication on the deal.

"Now they have to deal with whatever comes up," Singh said referring to fears that REL may not have enough gas supply to produce electricity in the state.

Additional inputs: Business Standard and Agencies

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