Anil Ambani Says Wants To Resolve Disputes With Mukesh Ambani

[Arun 795]

Sunday, October 11, 2009 8:35 pm IST

Reuters India

Chairman of Reliance Communications Anil Ambani called on Sunday for a renewed effort to end a bitter feud with his brother triggered by the carve-up of up a vast family business stretching from energy to telecommunications and financial services.

He said in a statement he believed "all disagreements can be sorted out in a constructive, cordial and conciliatory manner", and called for "a generous heart, a willing mind and accommodating spirit to resolve issues".

The row between Anil Ambani and his brother Mukesh has unnerved investors considering oil and gas exploration in India.

Their latest dispute is over a deal for Mukesh Ambani's Reliance Industries to sell gas to Anil Ambani's Reliance Natural Resources at below-market rates as agreed in a 2005 family settlement to divide the business following their father's death in 2002.

The gas dispute has led to a near-daily exchange of words, and Anil Ambani has accused the petroleum ministry of taking the side of Reliance Industries.

The government has lodged a petition with the Supreme Court to intervene in the case, arguing gas is its property, and that the private pact is not valid.

The court, in a hearing on July 20, did not exclude the government from the case. It is due to hold another hearing on the dispute on Oct. 20.

In his statement, Anil Ambani said that others too wanted an end to the impasse, adding that there could be no better gift to the two brothers' mother, Kokilaben, who had brokered the 2005 settlement that has not been made public.

A spokesman for Reliance Industries said he had no comment.

This latest move towards reconciliation is expected to nudge up shares of some Reliance companies and boost market sentiment, said V.K. Sharma, head of research at Anagram Capital.

"There has been a lot of uncertainty lately, so this will have a positive impact and a temporary salutary effect on the market overall," he said.

"Then it will come down to details of any new settlement."

Following is the text of the statement issued by industrialist Anil Ambani seeking reconciliation with his elder brother Mukesh:

"In June 2005, with the blessings and approval of my respected mother Kokilaben Ambani, and in line with the vision and value creation philosophy of our beloved founder Chairman, Dhirubhai Ambani, we announced the restructuring of the Reliance Group.

I had sincerely believed then, that we had resolved all issues, and come to an amicable settlement that would create two of India's most dynamic business groups, bring peace and harmony to our family, and generate substantial wealth for millions of shareholders of the Reliance family.

Over the past 4 years, some parts of that promise have been realised.

Unfortunately, the joy of that achievement has been tempered by the sorrow, pain and anguish of continuing disagreement and acrimony with my elder brother, Mukeshbhai.

Over these past 4 years, I have persevered with utmost sincerity, humility and good faith, and left no stone unturned to try and resolve our differences.

To my lasting regret, despite all my well-meaning efforts, I have failed - pushing us even to the extreme step of recourse to litigation to protect the interests of over 11 million shareholders of our Group.

Over the past few weeks, many elder statesmen, trusted family members, and long-standing friends of my father, Dhirubhai Ambani, who have always had the best interests of the nation and the Ambani family at heart, have talked of the need to break the current impasse, and to find a solution that puts an end to this bitterness and rancor; and paves the way for substantial future growth and value creation for the country and millions of our shareholders.

I agree with each one of them. This has been a time of deep sadness and pain for me personally.

Yet, throughout this very trying period, I have maintained the greatest of love, affection and respect for Mukeshbhai - as I have done since my birth.

In that spirit, I have made this pilgrimage today to the holy shrines of Kedarnath and Badrinath, in the hope of seeking divine inspiration and blessings, in trying to heal the wounds, and in making a renewed effort to resolve, reconcile and reciprocate.

I sincerely believe that Mukeshbhai and I can, even at this late stage, sort out all our disagreements, in a constructive, cordial and conciliatory manner, if we both commit to getting this done.

The issues are only a handful, and the facts are well known. My judgement says that they can all be resolved in a matter of weeks, and will not require several months of discussions.

Accordingly, with the blessings of my mother, and invoking the power of Lord Shiva from this most sacred of holy places, I am once again reaching out to Mukeshbhai - and hope and pray that my feelings will be reciprocated, and we will arrive at a solution to all outstanding issues, with a generous heart, a willing mind, and an accommodating spirit.

There can be no better gift to my mother, Kokilaben Ambani in her 75th year, and to the legacy of our beloved father, Dhirubhai Ambani, the proud creator of the Reliance Group."

[::Hitesh:: 1,763]

Full Family business issues,

My point for reading this article was only to judge Will rim cdma will get good benefit or not,

Noting else .

By the way Good info.

[FEVIN-RAJ 61]

good initiative....

[theking 35]

It definately adds great values to the stock too!!

And it did also add at the time of the split!!

[Arun 795]

The response from Mukesh's camp doesn't sound good, this was the statement given by them:

“RIL has noted the comments made by Anil D Ambani with the care and concern they deserve. RIL welcomes this statement, and hopes it is a positive change in the negative, calumnious and malafide campaign launched by R-ADAG against RIL.”

“RIL believes there is no contentious issue in the world that cannot be resolved satisfactorily through mutual dialogue, provided the proposal for reconciliation is anchored in good and honest intentions. RIL has always maintained that the dispute under litigation is not merely a family matter, as Anil Ambani’s statement once again tries to make out to be.”

“Vital national interests in terms of securing government’s revenue from natural gas...and GoI’s sound policy framework for promoting India’s energy security, are at stake. The interests of RIL’s shareholders are also at stake. RIL does not belong to a family. It belongs to shareholders, to those associates who have made this journey possible and most importantly to the nation. Issues which arise out of a decision of the Bombay High Court transcend any private differences between two brothers or two corporate entities (which) now can only be decisively resolved by a decision of the highest court.”

“RIL sincerely hopes that any overture for rapprochement to end acrimony are sincere and in no way related to the ongoing hearing of the case in the Supreme Court. Sadly, the conduct of R-ADAG so far makes it difficult for RIL to believe that Anil Ambani has had a real change of heart. For the last many years, Anil Ambani has indulged in a malicious campaign against RIL and its Chairman. The campaign reached its nadir in recent months through a vicious series of advertisements, unprecedented in India’s corporate history. RIL. while denying all the false accusations has responded to this campaign with dignified silence.”

While Anil Ambani had been repeatedly proclaiming that Mukesh had rebuffed him at every attempt to talk peace over the past three-odd years, the RIL statement says this is a lie, in effect.

[aviator 3]

A gentleman's reply........

Hats off to RIL

[theking 35]

Its huge, huge, huge money involved!!!

Alls well (or rather in the well) when diplomacy dominates.