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Ambani truce talks in final lap
BS Corporate Bureau in Mumbai |
June 04, 2005 13:03 IST
The Ambani brothers are believed to be in the final stages of an agreement to split the Rs 100,000 crore (Rs 1000 billion) Reliance group.
Sources close to the developments said an announcement on the settlement was possible before the annual general meeting of group flagship Reliance Industries, scheduled to be held in June-end or the first week of July. Last year, the AGM was held on June 24.
The Reliance Ownership Issue: Complete Coverage
Though neither camp was willing to comment on the developments terming it as an "internal family matter", the sources said no final settlement formula had been reached yet but "things were moving rapidly".
The sources said the fact that both camps had stopped the "proxy war through the media" was a clear signal that a truce formula was in sight.
Besides, Reliance Energy's massive investment plan in Orissa also proves that things were being sorted out. "No one makes such announcements unless the company has a clear idea of the ownership," they said.
Talks on a settlement are based on a formula proposed by family friend and ICICI Bank CEO and managing director KV Kamath. According to this formula, Reliance Infocomm and Reliance Energy would go to Anil Ambani, while chairman and managing director Mukesh Ambani would get Reliance Industries and IPCL.
The valuation of the group assets was done by Nimesh Kampani of J M Morgan Stanley.
The fate of Reliance Capital is not known, with some sources saying that it might go to the sisters, Dipti Salgoacar and Nina Kothari.
However, this could not be confirmed. Anil Ambani has already begun talking to executives of Reliance Infocomm, a move that strengthened the speculation that he would be taking over Infocomm.Reliance Infocomm executives refused to comment and said the company was a professionally run organisation and a change in ownership would not have any impact on operations.