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'RIL settlement to boost markets'
June 18, 2005 14:17 IST
Last Updated: June 18, 2005 18:07 IST
Delighted over the reconciliation between the two warring Ambani brothers, India Inc today said the amicable settlement will boost capital markets and hoped that the demerged Reliance group companies emerge stronger under their respective leadership.
"I am delighted. They are two outstanding individuals and it was unfortunate that their differences became public... but the settlement is a very positive step," Rahul Bajaj Auto chairman and close family friend said.
"This is a very good news. The settlement is excellent for shareholders. Both brothers are extremely entrepreneurial and I see greater growth in their respective businesses," Adi Godrej, Godrej group chief said.
Asked if younger brother Anil - who walked away with Reliance Energy, Reliance Capital and Reliance Infocomm in his kitty - emerged as the winner in corporate India's most keenly watched battle, Godrej said "I don't think anybody is a winner.. the real winner is the shareholder."
Major industry chambers - CII, FICCI and Assocham – also welcomed the announcement and said resolution of the dispute would boost stock markets and uplift the morale of investors.
"The settlement between Mukesh and Anil Ambani will boost shareholder confidence and give a fillip to stock markets," Onkar Kanwar, FICCI president said in a statement.
Kanwar also expressed confidence that under the leadership of Mukesh and Anil Ambani, their group companies would grow from strength to strength.
CII also echoed the positive tone and hailed the settlement which marked an end to the seven-month long tussle over ownership issues in the country's biggest corporate house.
"The reconciliation between the Ambani brothers would provide strength and stability to Reliance empire," CII said.
The Reliance group would scale greater heights and would continue to contribute to the country's rise as a competitive and emerging economy in the world, it added.
Assocham president M K Sanghi said the Reliance Group had made a special place for itself in the national and international market and a "peaceful solution" to the property ownership dispute was necessary to send a positive signal to investors.
"The settlement will give tremendous boost to the capital market and uplift the morale of investors who had parked their surpluses in Reliance Group, besides encouraging the investors to rebuild their confidence in Reliance," he added.
Association of Mutual Funds in India, umbrella body of MFs, and industry also welcomed the pact between Ambani brothers to resolve ownership issues and said it will provide a clear direction.
There has to be clear responsibility in a big conglomerate and the settlement over the ownership issues has brought finality to differences between Ambani brothers, AMFI chairman A Kurien said in Mumbai.
"The fact that very talk of settlement till yesterday took the prices up indicates how sensitive this company is to investors", Kurien said.
They should commit to the pact and not go again on picking holes. This settlement should be considered as "final" and "sacrosanct", he added.
Indian Merchants Chamber secretary general, P N Mogre said, "It is a good development, a welcome thing really as it has been going on for the past six months. It will have its repercussions on the future and credibility of the group".
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