Reliance "Ownership Issues"

[deepu 0]

Letter reveals reason for the Ambani feud

MK VENU AND SANJEEV SHARMA

TIMES NEWS NETWORK[ FRIDAY, NOVEMBER 26, 2004 01:28:46 AM]

NEW DELHI: The real reasons behind the discord between the two Ambani brothers is slowly coming to light.

At the core is the agenda of a Reliance Industries’ board meeting that took place on July 27, ’04, and a supplementary item in it that was introduced and approved by all directors.

What is of concern to the younger brother — Anil Ambani, Reliance vice-chairman and managing director — is that the supplementary item (number 17 on the agenda) sought to redefine the powers of various committees, executives, the CMD, vice chairman & MD, and other executive directors.

According to Anil Ambani, who has submitted a letter of protest to Reliance chairman and his older brother, Mukesh Ambani, this item was introduced without prior notice and was approved by the board without any proper discussion or debate. A copy of Mr Ambani’s protest letter is in ET's possession.

In another development , six directors of Reliance Energy , a company headed by Anil Ambani, resigned from the board. The reasons for the resignation are not out in the open, but reports in PTI said: “Corporate circles see this as a tactic in the ongoing battle between Anil and Mukesh Ambani.”

Significantly, Anil Ambani finally broke his silence late on Thursday evening, though he carefully chose his words.

“I appreciate your waiting so long; there are long hours and there will be long days,” he said to the waiting newspersons. Investor concern over the current conflict eroded over Rs 2,400 crore of investor wealth across all Reliance stocks.

However, contrary to rampant speculation and wild gossip that has ruled in the secondary media, Anil Ambani’s letter to Mukesh does not mention anywhere that his “powers have been stripped”.

Indeed, the letter is extremely polite, legally correct and in places bordering on the emotional. While the details of the contentious item No 17 are still not known, the new power devolution formula could still well be at odds with Anil Ambani’s current responsibilities as the MD.

But, to what extent, it is anyone’s guess. When contacted by ET, a top RIL source denied that there had been any move to curtail Anil Ambani’s powers.

“All that the item in question sought to do is to restate and clarify the powers of the CMD, the vice-chairman and the executive directors. The resolution essentially said that the powers of the CMD would be akin to that of the CEO of a listed company in the USA in the sense that everyone would report to him. There was no move to curtail the powers of the vice-chairman.”

The person further said: “The perception that Anil Ambani’s power is being curtailed has no basis to it.” Asked to comment about the spate of rumours, he said: “Anil will not be asked to step down from the RIL board nor is there any move to remove him from Reliance Energy.”

In his letter — dated October 25, ’04 — to Mukesh Ambani, the younger brother has sent a detailed account of the controversial last board meeting in which the powers of the two MDs were redefined “through a supplementary agenda without proper and due notice”.

Anil Ambani has asserted that “the agenda was introduced without my knowledge and/or consent, and keeping me completely in the dark”.

Even procedurally, the younger brother has challenged the manner in which the draft minutes of the board meeting seeking to re-align his powers were prepared.

He has said, “Contrary to past practice followed without interruption for 10 years whereby draft minutes were first circulated to the two MDs for confirmation”, no such practice was followed this time around.

Anil has lamented that, “Nearly three months after my second email to the CMD and my personal discussions with several directors, and their interventions with the CMD, I have not received any acknowledgement much less any response to my emails. Instead, it has been communicated to me on the CMD’s behalf that the matter is final, and cannot be altered.”

The larger point that Anil Ambani has sought to make in the letter is that the move has fundamentally altered the governance structure of the company, thus impacting its various stakeholders.

“The issue of variation of powers of the MDs, executive directors... is a matter of great importance, vitally affecting the corporate governance structure of the company thereby impacting investors, banks, FIs, lenders, employees and others besides consequences on diverse agreements to which the company is party.”

An example of Anil Ambani’s equanimity is the concluding para of the letter: “I propose that item number 17 of the minutes be kept in abeyance, till we had a full discussion, and have decided the forward path on a mutually agreed basis. However, if this is not acceptable to the chairman, my views... on this subject, may kindly be placed on record, and taken into consideration by the board.”

[chandramauli 0]

An example of Anil Ambani’s equanimity is the concluding para of the letter: “I propose that item number 17 of the minutes be kept in abeyance, till we had a full discussion, and have decided the forward path on a mutually agreed basis. However, if this is not acceptable to the chairman, my views... on this subject, may kindly be placed on record, and taken into consideration by the board.”

Is item no 17 creating most of the problems here ??? and btw wht does item 17 state ?

and can reliance put all the updates that are happeing(the ownership dispute) in their site ...cause i belive that the media is misinterpreting & messing up every little thing the Ambani family tries to say.

[deepu 0]

'Reliance battle likely to intensify'

IANS[ FRIDAY, NOVEMBER 26, 2004 12:40:29 PM]

MUMBAI: The much talked about family feud over the control of Reliance Industries, India's largest industrial house, is set to turn into a full-fledged boardroom battle that may entail a revamp of the management.

A day after six directors of a group company, Reliance Energy, submitted their resignations, experts say the possibility of a patch-up between the bickering Ambani brothers who control the mammoth Reliance empire seems remote at this stage.

"The recent developments clearly show that the basic differences between the two brothers over the functioning of the company are much deeper than earlier anticipated," said a city-based corporate watcher.

"I think it is now going to be a long-drawn battle, which will mostly be fought in the boardroom with both brothers trying to show their authority," the analyst, who didn't want to be named, told IANS.

"You can't call it a normal practice when six directors quit a company together without giving any official reasons. This is an indication that things are going to get more complicated in the days ahead."

Although Anil Ambani, who is locked in a feud with elder sibling Mukesh Ambani over the control of the $20-billion Reliance group, finally broke his silence late on Thursday, he refused to make any comment on the raging controversy.

He didn't give any reason for the mass resignations from Reliance Energy, of which he is chairman and managing director, and said the board would consider these resignations at the appropriate time and take a decision.

Sources say the six directors were considered close to Anil and the younger Ambani sibling planned their departure from the company to put the ball back in the court of his elder brother.

Mukesh, 47, is chairman and managing director of the flagship Reliance Industries while Anil, 45, holds the vice-chairman's office.

With the rift getting increasingly messier each day, legal experts say the battle may finally roll over to courtroom that may result in a split in the company with Rs.80,000 crore in annual sales.

Meanwhile, investors continue to fret over the possibility of the company's performance being affected in the long term. The resignations Thursday wiped off Rs 2,452 crore in cumulative market capitalisation from the five listed group companies on the benchmark Bombay Stock Exchange.

"Investors are gradually turning jittery about the whole episode. They are not sure how the entire controversy will play out in the days ahead," said Deepak Shah, an analyst with Pranav Securities.

"Although the overall market sentiment is very bullish on sustained inflows of foreign funds, Reliance equities are putting significant negative pressure on the index," Shah told IANS.

Reliance Industries accounts for significant weightage on the benchmark 30-share Bombay Stock Exchange sensitive index or Sensex and the movement in the company share prices is indicative of the overall market mood.

Rumours of a rift between the two brothers, Mukesh and Anil, had been raging for the last few months.

Things took a dramatic turn when CNBC last Thursday quoted Mukesh as admitting to having "ownership issues" with his younger brother.

In an internal e-mail message to all the Reliance employees, Mukesh claimed on Tuesday he was the final authority on all company matters and that the ongoing ownership controversy would have no impact on its functioning.

[deepu 0]

Mukesh not to approach court

ECONOMICTIMES.COM[ FRIDAY, NOVEMBER 26, 2004 05:59:18 PM]

NEW DELHI: Reliance Industries chairman Mukesh Ambani has said that he will not explore legal options to solve ownership issues with his younger brother Anil Ambani, according to a private TV channel.

The company's board is fully backing Mukesh Ambani as chairman and managing director of the RIL and has vested all authority in him, the channel quoted an RIL spokesman as having told its correspondent.

[city02 63]

M L Bhakta to reconsider resignation from RIL Board

November 24, 2004:

Mr. Mukesh D Ambani, Chairman and Managing Director of Reliance Industries Limited (RIL), called on Mr. M L Bhakta, one of the senior most Directors of the Company today afternoon.

Mr. Bhakta, who has been on the Board of Reliance Industries Limited since 1977, had in a letter addressed to the Chairman yesterday expressed his desire to resign as a Director of the Company on the grounds of age. 

During the meeting, Mr. Ambani recalled Mr. Bhakta’s association with the Company since its first IPO, the invaluable services rendered by him to Reliance Industries Limited as a valued colleague of the Founder Chairman of the Company, Mr. Dhirubhai Ambani, and as a guide and mentor of the present leadership of the Company thereafter.  Requesting Mr. Bhakta to reconsider his resignation, Mr. Mukesh D Ambani said: “I cannot even imagine accepting it.”

After a warm and affectionate exchange of views, Mr. Bhakta has agreed to reconsider his resignation.

[Arun 795]

Now, peace moves in Reliance group

Senior industrialists, religious leaders and politicians have swung into action to mediate between the warring Ambani brothers, Mukesh and Anil, even as a Reliance Industries spokesperson on Friday ruled out chances of Mukesh dragging his brother to court.

However, the board of directors of Reliance Industries had not accepted Vice-Chairman and Managing Director Anil Ambani's challenge to the powers given to his elder brother, who is chairman and managing director of the company, at a meeting of the board of directors on July 27, the spokesperson told the Press Trust of India.

"The Reliance board did not accept the points made by Anil. The board finds no case for Mukesh to respond to the note," he was quoted as saying.

Mediation efforts begin:

Bajaj Auto Chairman Rahul Bajaj met Mukesh Ambani for an hour-and-a-half on Friday

Ramesh Oza, family "guru" of the Ambanis and founder of Sandipani Vidyaniketan and Ashram, is learnt to have stepped in to bring the feuding brothers together. "The guru's intention is only to help the family and that process is on," says one of his aides

Murari Bapu, another religious leader, is working towards a patch-up between the brothers

BUT PROBLEMS REMAIN: A Reliance spokesperson says the company board does not accept Anil Ambani's challenge to the powers given to Mukesh Ambani

"Whatever happens between them, they (Mukesh and Anil) will definitely not drag the matter to court," a senior Reliance executive said.

At the same time, friends of the Ambanis have initiated steps to end the scrap between the brothers. Bajaj Auto Chairman Rahul Bajaj met Mukesh Ambani for an hour-and-a-half on Friday.

"I met Mukesh today for a friendly exchange of views. I wish them all the very best," Bajaj said, although he added the meeting had nothing to do with the ownership issues that have cropped up between the brothers.

"Both brothers are very good friends of mine. I have known Anil for over 20 years now and we are both on the board of the International Business School," he added.

Ramesh Oza, founder of Sandipani Vidyaniketan and Ashram and family 'guru' of the Ambanis, is learnt to have stepped in to bring the feuding brothers together.

Oza, 47, is known to be close to the whole family. While Oza was unavailable for comment, a Sandipani Vidyaniketan official said: "The guru's intention is only to help the family and that process is on."

Murari Bapu, another religious leader, is known to be working towards a patch-up between the brothers.

It has also been learnt that Digvijay Singh, former chief minister of Madhya Pradesh, has mounted efforts at bringing Mukesh and Anil Ambani together.

However, the biggest hopes for a truce between the Ambani brothers lie with their mother Kokilaben. "They do not need a mediator so long as their mother is alive," the Reliance executive said.

The Reliance executive said Mukesh Ambani had not appointed legal counsel so far because he was eager to settle the issue out of court.

Though there was talk that Harish Salve, who has represented Reliance Industries on several occasions, had been appointed by Mukesh Ambani on this matter, the leading lawyer denied the rumours to Business Standard. "I do not accept retainership in family matters," he said.

[Ashokjp 15]

That map kinda thing gives gud flashbak of the family

[jusmail 0]

Brothers Ambani: Fighting for power or money?

That’s a Rs 90,000 crore question. The fight between Ambani brothers - Mukesh and

Anil, who run the country’s largest business group in the private sector, is threatening

to be a full blown legal brawl that may take many years to settle, write ANIL CHAKRADEO

from Mumbai and DILIP MAITRA in Bangalore.

A business historian had once said that family run businesses do not survive beyond

the third generation. While his theory may well apply to several businesses run by

families where professionals are required to take a backseat and a son or a nephew

or a niece of the founder calls the shots, one thought the business empire built

by the Ambanis would be an exception to the rule given its huge size and professional

attitude shown by the Ambani brothers. For that matter even when Dhirubhai Ambani,

the founder of the Rs 90,000 crore (market capitalisation) Reliance group was alive,

he had always entrusted the task of building the business with professionals. He

would literally poach on the top notch officials working in efficient government

companies and got them to work for him.

Started in kitchen

But events that have taken place over the last few days indicate that things are

not exactly what they appeared to be for the outside world. It is not that things

were always smooth between Mukesh, 47, the elder brother and Anil 45. According to

those who have access to the inner circles of the Ambani family, differences between

the brothers first started because of the differences between their wives, namely

Tina Ambani, formerly Tina Munim, a former Hindi film star and Nita, wife of Mukesh.

Anil managed to marry Tina despite opposition from the other family members.

When Dhirubhai was at the helm, there was no question of the brothers fighting with

each other. Even at the time of demise of Dhirubhai Ambani two years ago, the brothers

managed to put up a united face and they did not give any impression that they were

not getting along well. Though a section of the media did express doubt whether the

brothers would hold together.

The Infocomm fiasco

The outside world first came to know that all was not well between Anil and Mukesh

at the time of inauguration of Reliance Infocomm's facility at Thane, on the outskirts

of Mumbai in December 2002 when Anil was absent. It was a big occasion for the company

and the inauguration was to be done by the then prime minister, Mr Atal Behari Vajpayee.

When asked about Anil’s absence, the Reliance officials underplayed it and ensured

the media did not read too much about Anil skipping the inauguration. Now, it is

also known that Anil developed a cold-feet for the Infocomm project and objected

to the flagship Reliance Industries Limited (RIL) investing huge sums (around Rs

13,000 crore) in the company.

According to highly placed sources, it was Anil’s decision to become a member of

the Rajya Sabha which made Mukesh extremely unhappy and was a major reason that made

him curb his power. Initially, Anil was to get elected to Rajya Sabha as a candidate

of Samajwadi Party. It was certainly not a wise decision because an industrialist

cannot afford to openly side with a particular political party and certainly not

Mulayam Singh’s Samajwadi Party which is at loggerheads with the Congress which is

running the governments at the Centre and also Reliance’s home state Maharashtra.

With much cajoling, Anil decided to get elected to RS as an independent. But the

whole world knows that it was only with the backing of Samajwadi Party from Uttar

Pradesh that he could enter Rajya Sabha. In fact, soon after getting elected, Anil’s

company Reliance Energy announced a Rs 10,000 crore gas-based power plant for Uttar

Pradesh. Sources close to Mukesh also point out that it was no coincidence that within

a couple of months of Anil joining Rajya Sabha, the Department of Telecommunication

(DoT) slapped a notice on Reliance Infocomm for illegally diverting international

calls as local calls causing huge loss to state-owned companies Bharat Sanchar Nigam

Limited and Mahanagar Telecom Nigam Limited (MTNL).

DoT’s move, it initially slapped a Rs 200 crore fine on Reliance Infocomm, was considered

by Mukesh camp as an effort to disparage Reliance group on some petty illegal practice.

Logically, such notices should have meant nothing to Reliance which is used to sort

out such things with ease. But the fact that the news about DoT's action was systematically

leaked out to media, allegedly by Anil’s people to cause embarrassment, irked the

Mukesh camp. Mukesh, the chairman of RIL, whose pet project is Reliance Infocomm,

therefore, decided to show Anil his place by clipping his powers. And that is what

has culminated in the present crisis.

The latest flare-up

Though Mukesh last week clarified that the “ownership issue reported by the TV channel”

does not exist and he was chosen as the successor of Dhirubhai Ambani by himself

before his death, Anil, clearly was not ready to accept that.

According to an emotional and angry letter written by Anil on October 25, 2004 (leaked

out to press) to the chairman of RIL, (Mukesh), the former has accused that his power

and responsibilities have been curtailed through a improperly passed board resolution

of RIL. In resolution passed on July 27, 2004, Mukesh took away most of the power

of Anil as a managing director of RIL through a last-minute item (the item 17) introduced

at the tail-end of the board meeting.

According to a newspaper report this resolution 17 reads “Shri Mukesh D Ambani, as

Chairman and Managing Director, being accountable and responsible to the Board, will

exercise the specific power to allocate, delegate or assign specific duties, responsibilities

and powers to Managing Director(s), whole time Director(s) and all executives and

employees,…And to confirm, modify or countermand any actions or decisions taken by

any such persons.” In simple words this means that as Chairman of RIL, Mukesh has

overriding power to revoke/ change any action and decision taken by Anil or any other

executive in the company.

Questionable intent

It is this resolution and the way it was passed in a hurry without any discussion

by the RIL Board, Anil objected to. Said his letter “The minutes incorrectly state

that after discussions, all Directors (other than the CMD, who did not participate)

unanimously approved of the resolution. The fact is that there were no discussions,

and there was no vote, and the question of the resolution being passed unanimously

thus does not arise.”

Anil also pointed out that the passing of the resolution raises serious corporate

governance issues. “The issue of variation of powers of the Managing Directors, Executive

Directors, and committees of directors, is a matter of great importance, vitally

affecting the corporate governance structure of the company, and impacting its various

stakeholders, including investors, banks, financial institutions, lenders, employees,

and others, besides having consequences on diverse agreements to which the company

is a party. These ramifications were neither discussed nor thought through at the

Board meeting.”

Keeping aside the method the way this contentious resolution was passed, the Reliance

Board seems to have sided completely with Mukesh. According to a news agency report

soon after Anil’s letter was made public by the media, a RIL spokesperson said “The

RIL Board did not accept points made by Anil Ambani…and finds no case for Mukesh

to respond to the note.” Sources close to Mukesh also point out that the resolution

that Anil has objected to, is nothing but reinstating the normal powers of Chairman

and Managing Director and other executives in a company. “The CMD in a company (under

the guidance of the Board) is the supreme decision-making authority and above other

executives, including managing director. Anil is not accepting this simple fact of

corporate hierarchy.”

Meanwhile, in another related move, six directors (four were in executive position)

of Reliance Energy Ltd, resigned from the company’s board together on Thursday last.

Reliance Energy, formerly BSES Ltd, is run by Anil and majority of its shares are

held by RIL. Though it is not clearly known which of the brothers was behind the

move, the resignations are certainly connected with the power struggle between the

brothers.

Mute spectators

While the family soap opera of ownership has come out of the private domain for public

viewing through the media, the lenders and shareholders are helplessly watching how

their shares held in four listed Ambani companies are losing value.

RIL, Reliance Energy, Reliance Capital and IPCL together have lost around Rs 10,000

crore in market capitalisation. As usual, the regulators, like Securities and Exchange

Board of India (Sebi) and Company Law Board are yet to wake up and direct the brothers

to resolve the issues quickly for the protection of shareholders and lenders.

A long haul

It is totally uncertain at this point of time the future course the most keenly-watched

family drama will take. There are unconfirmed reports that Anil is already preparing

for a legal course and may even spill more beans to put pressure on his brother.

Mukesh being the Reliance boss does not need to take legal action first, but will

certainly retaliate if drawn to court. Meanwhile, family friends, well wishers and

senior board members in the group companies are trying to convince the brothers to

give up the confrontation and go for a reconciliation.

But that has to happen within certain limitations. Anil, for example, cannot expect

to be made the chairman of RIL replacing Mukesh, who is elder. It is unlikely that

two brothers will be able to forget everything and work together again.

Logically then, a split in the business is more likely solution. But given the complex

holding structure in the group companies (see box) and lack of clarity on ownership

of investment companies, arriving at an acceptable wealth-sharing formula could be

difficult and time-consuming. The warring brothers will do a great service to their

shareholders and financiers, who helped them to become what they are today, if they

resist from trading charges against each other publicly.

Copyright 2004, The Printers (Mysore) Private Ltd., 75, M.G. Road, Post Box No 5331,

Bangalore - 560001

Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523

[deepu 0]

You can see the full coverage of Reliance ownership issue in rediff at this link

http://www.rediff.com/money/ril04.htm

I'm just a pro: Anil's e-mail to REL employees

TIMES NEWS NETWORK[ MONDAY, NOVEMBER 29, 2004 01:55:49 AM]

MUMBAI: Inspired by older brother’s e-mail to employees of Reliance Infocomm, Anil Ambani has shot off an e-mail message to over 25,000 employees of Reliance Energy group companies.

The message tries to reach out emotionally to all the employees after the high-profile resignations of six REL directors.

In his message, Anil Ambani said he doesn’t hold any personal stake in REL, and to that extent, he is just one of them — a “professional”.

The promoters’ stake in REL, a little over 50% cumulatively, is held by three group companies: Reliance Power Ventures (35.51%), Reliance Industrial Investments & Holding (7.34%) and Reliance Capital (6.46%).

In his message, Mr Ambani said Reliance Industries owns, directly or indirectly, around 50% of REL, domestic institutional investors hold 21%, FIIs another 21%, and the balance 8% is held by nearly 100,000 retail investors.

“We have created tremendous value for each of them,” he said. Sources said the e-mail message is in response to the mass resignations by six directors on Thursday (November 25). On Sunday, a select few employees were called to send e-mails from REL’s headquarters in Santacruz, while Mr Ambani worked from his Reliance Centre office.

The message has also been pasted on REL’s official website.

REL sources said their chairman’s message attempts to achieve the poignant and realistic, in sharp contrast to his brother’s e-mail on November 23 to his employees, which revolved around legacy and control.

“Like most of you, I too have no personal shareholding in Reliance Energy. I am here as a professional to serve the interests of all our stakeholders. For me, professionalism is a value system, a state of mind, and above all, a culture of respect for all,” the younger Ambani brother said in his message. “Reliance, Dhirubhai Ambani would often say, has been built on the foundation of relationship and trust. We have always endeavoured, as an organisation, to exemplify that principle in all our actions.”

He said last Thursday, six directors of REL tendered their resignations to the board. “This development has left all of you with a sense of anguish and uncertainty. I fully understand and appreciate these concerns,” he said.

The board of directors of REL is meeting in the next few days to consider these resignations.

Meanwhile, Mr Ambani has requested each of the six directors to continue and carry out their assigned roles and responsibilities, as before.

The message revolves around the employees and team spirit, which, Mr Ambani thinks, is the company’s greatest strength. “The opportunities and the challenges in the power sector are enormous. I am confident that together, we — each one of us — will work with commitment, dedication and devotion, to realise the vision and dreams of our beloved founder, Dhirubhai Ambani.”

He has requested all employees to support him with their ‘valued inputs and comments.’

On Saturday, Anil Ambani visited Tirupati to pay obeisance at the Lord Venkateswara temple, accompanied by wife Tina and two sons. In the evening, he attended the ET Awards for Corporate Excellence, which was also attended by his brother Mukesh Ambani. In his email message, Anil Ambani said Reliance Energy is today India’s most valuable power sector company. For the past two years, it has ranked among the top 3 best performing sensex scrips , he said.

“In our short journey of under two years, we have achieved growth, with profitability. The market capitalisation of REL has multiplied 3 times from Rs 3,000 crore to over Rs 10,000 crore, the profits have more than doubled from Rs 162 crore to Rs 367 crore and the net worth has gone up nearly 3 times from less than Rs 2,500 crore to Rs 6,200 crore.”

[chandramauli 0]

please put in your comments too .. just dont copy/paste over here !!

[chandramauli 0]

Source: Business Standard. Image Source: AFP

Kukaswada (Veravel), Nov 30: Kukaswada, a tiny village in Gujarat's Junagadh district, has been holding an unusual prayer meeting for the last couple of weeks.

Every evening, the Masrani family and their neighbours pray for the Ambani brothers in their one-room house. It isn't Gujarati pride alone that's prompting the prayers. The reason lies in history - it is the house where Dhirubhai Ambani was born.

"May God give better sense to the two brothers and end their conflict," says Shantilal Masrani, whose father Natwarlal bought the house from Heerachand Ambani, Dhirubhai's father, in 1935 - for Rs 50.

Heerachand shifted to a rented house in nearby Chorwad village when Dhirubhai was only three. Though the Masranis do not have any photo of the Ambani family members, Shantilal possesses the sale document.

|

The deed, signed on a Re 1 stamp paper, bearing the seal of Nawab Sir Mahabat Khan of Junagadh, is almost torn and the Masranis recently had it laminated.

Shantilal Masrani and his wife Jaswantiben are childless and consider Mukesh and Anil Ambani their children. "We believe in Lord Krishna and Goddess Khodiyarmata. We are sure God will listen to us and end this sibling rivalry," Shantilal says.

The prayer meeting is attended spontaneously by neighbours, some of whom had seen Heerachand struggling to make both ends meet as a school teacher in Veravel, a coastal town around 40 km from here.

"We are too old to go to Mumbai and meet Kokilaben and her two sons and so we pray everyday better sense will prevail in the family. Dhirubhai could never dream his children will one day fight over the empire. Mukesh and Anil should stop fighting to fulfil their father's dream," says Jaswantiben.

Shantilal, who has been running a Reliance LPG agency from his house, is quick to add that the agency is not a favour bestowed by the Ambanis.

Aswin Joshi, a local cab driver, says Dhirubhai had come to the village with his entire family in January, 1996. "I remember Mukesh and Anil take a tour of the village, walking down the dusty roads," he says. Joshi has been attending the prayer meeting at the Masrani house religiously.

Around 11 km from here is Chorwad village. The house where Dhirubhai spent over 20 years as a tenant along with his father, now houses the Chorwad branch of Dena Bank. Rajabhai Surabhai Bharada, another tenant, who was witness to the growth of Dhirubhai, is also upset by the ongoing conflict.

"Dhirubhai used to stress on a unified family. I also attend the prayer meet at Kukaswada, expecting that things will turn for the better," he says, wiping out the dust on a black and white photograph of Dhirubhai with Rajabhai's father, Surabhai. "This smile on Dhirubhai's face is missing in his two sons nowadays," he says.

__________________________________

[deepu 0]

Ambanis saga a real life Kahani Ghar Ghar Ki

MUMBAI: The Ambani brothers, Mukesh and Anil, whose ownership tussle in Reliance has rocked India's largest business empire, have not been on speaking terms for nearly two years and interact only through aides and associates.

In fact, those who know them closely trace the genesis of the present trouble to almost 1994 when the first of their children was born, raising worries in both Mukesh's and Anil's families about their inheritance.

But so long as patriarch Dhirubhai Ambani was alive, the differences remained subliminal and perhaps were confined to their own family quarters, aired only by their wives, Nita and Tina, "about the futures of their children".

But once Dhirubhai was gone, the inchoative cracks became open fissures that led to the two brothers not talking to each other since almost December 2002, about five months after their father's death.

Mukesh, 47, is the chairman and managing director of Reliance Industries while Anil, 45, holds the vice chairman's office.

A lot of the antagonism between the two brothers were fuelled by cronies and courtiers.

But behind the differences, say sources both inside and close to the group, lay the increasing isolation of Anil from key decision-making and financial affairs of Reliance Industries, the flagship company with Rs 800 billion annual sales.

In fact, aver those close to Anil, had he not been increasingly sidelined by Mukesh and his yen for controlling things, he may not have been "forced" to seek "political solace".

The reference was to Anil's dalliance with the Samajwadi Party and his closeness to Uttar Pradesh Chief Minister Mulayam Singh Yadav and party general secretary Amar Singh, who encouraged his political debut and sponsored his entry into parliament.

We may soon see a film or serial based on Ambani brothers

[city02 63]

I wonder who writes this rubbish:

the differences remained subliminal

http://dictionary.reference.com/search?q=subliminal

sub·lim·i·nal (sb-lm-nl)

adj.

Below the threshold of conscious perception. Used of stimuli.

Inadequate to produce conscious awareness but able to evoke a response.

It could NOT have been subliminal since everyone was acutely aware of it but no one dared to speak of it!

[deepu 0]

Anil spurns Mukesh's settlement offer

Mukesh Ambani has begun making overtures to his brother Anil Ambani, for splitting the Reliance group between them.

Anil Ambani has so far rejected the offers made to him through their mother, Kokilaben. Informed observers said a settlement seemed unlikely at the moment.

According to an informed source, Mukesh Ambani offered to transfer the control of Reliance Energy and Reliance Capital to his brother Anil Ambani, plus cash (one source said the figure was Rs 1,000 crore (Rs 10 billion), but a Reliance group official said the figure was incorrect), presumably to buy Reliance Industries' equity in both companies.

The Reliance group holds 50.15 per cent of Reliance Energy's equity, directly and through Reliance Power Ventures and Reliance Industrial Investments & Holdings. The group has a 48.16 per cent interest in Reliance Capital, almost all of it held directly by RIL.

Anil Ambani is said to have spurned the offer. A senior Reliance group executive said Anil Ambani wanted much more than this and that it would not be possible for his brother, Mukesh Ambani, to oblige.

At last week's average market prices of the shares of both companies, the value of the Reliance group's holding in both companies comes to Rs 6,115 crore (Rs 61.15 billion).

So, the sum offered does not seem to have covered the cost of buying the parent company's shareholding. Besides, said an informed source, the offer amounted to much less than the value of RIL's investment in Reliance Infocomm, which is mostly owned and managed by Mukesh Ambani.

It is also an offer in which Anil Ambani gets nothing out of the promoter holdings in RIL (46 per cent of the total), other than the small number of shares in his name.

It is reliably understood that Mukesh Ambani has made it clear that Reliance Industries as a company cannot be divided. Nor, after the war between the two brothers, can Anil Ambani stay on in Reliance Industries.

From Anil Ambani's perspective, the value of the two companies being offered to him is a small percentage of the Rs 42,794 crore (Rs 427.94 billion) that the promoter's shareholding in all Reliance group companies is valued at, at current share market prices.

Anil Ambani, therefore, viewed the offer as inadequate and unfair.

In his two-page letter to Reliance Industries employees, Anil Ambani pointed out that he and his brother Mukesh Ambani along with their father, Dhrubhai Ambani, had built the company.

Also, Reliance Energy needs gas for its power projects. For its proposed projects in Uttar Pradesh, it is supposed to get gas from Reliance Industries.

But if Reliance Energy is spun off from the Reliance group, this arrangement need not continue. Even if it does, Reliance Industries can choke supply if it so wishes, as a source points out.

A Reliance Energy board member told Business Standard last week that the company was prepared to buy gas from other sources, but that would alter the economics of the business.

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Ownership Issue Adds Fuel To Fire

http://economictimes.indiatimes.com/articleshow/946046.cms

SANJEEV SHARMA

NEW DELHI: The ownership and funding of Reliance Infocomm is beginning to emerge as a strong trigger for the discord between Mukesh and Anil Ambani , apart from the revision of powers of the chairman of RIL.

According to documents filed by Reliance Infocomm with lenders, the ownership has been listed in the name of Mukesh Ambani and Reliance without any mention of Anil Ambani , vice-chairman and MD of RIL, either as promoter or as a stakeholder. There is also no mention of the family in the telecom company’s stakeholding.

As a result, a new dispute now seems to have arisen — over not only the ownership of 34% equity in RIL but also the 55% equity in Reliance Infocomm, which is believed to be belonging to the family.

This is the first time in the history of the Reliance group that a distinction of this nature is sought to be made. In all other companies, either the ownership is attributed to the Ambani family or to the names of both the brothers.

The information filed by Reliance Infocomm in June ’04 to its lenders says, “Reliance Infocomm is promoted by Mr Mukesh Ambani and by RIL in its capacity as the lead investor.

As of March 31, ’04, Reliance group/promoter has contributed Rs 11,000 crore by way of equity and preference capital to RIC.”

This disclosure is learnt to have upset Anil Ambani, who has been questioning RIL’s Rs 15,000-crore funding of Reliance Infocomm to date.

Sources say Anil Ambani has reportedly asked how Mukesh’s name appears as sole promoter of Reliance Infocomm, given that RIL is the principal funding source.

When contacted, Anil Ambani’s office declined to comment. A questionnaire sent to Mukesh Ambani’s office did not elicit any response.

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Infocomm Stake Could Also Have Created Ambani Rift

http://economictimes.indiatimes.com/articleshow/946081.cms

NEW DELHI: The ownership and funding of Reliance Infocomm is beginning to emerge as a strong trigger for the discord between Mukesh and Anil Ambani, apart from the revision of powers of the chairman of RIL.

According to documents filed by Reliance Infocomm with lenders, the ownership has been listed in the name of Mukesh Ambani and Reliance without any mention of Anil Ambani, vice-chairman and MD of RIL, either as promoter or as a stakeholder. There is also no mention of the family in the telecom company’s stakeholding.

As a result, a new dispute now seems to have arisen — over not only the ownership of 34% equity in RIL but also the 55% equity in Reliance Infocomm, which is believed to be belonging to the family.

This is the first time in the history of the Reliance group that a distinction of this nature is sought to be made. In all other companies, either the ownership is attributed to the Ambani family or to the names of both the brothers.

The information filed by Reliance Infocomm in June ’04 to its lenders says, “Reliance Infocomm is promoted by Mr Mukesh Ambani and by RIL in its capacity as the lead investor.

As of March 31, ’04, Reliance group/promoter has contributed Rs 11,000 crore by way of equity and preference capital to RIC.”

This disclosure is learnt to have upset Anil Ambani, who has been questioning RIL’s Rs 15,000-crore funding of Reliance Infocomm to date.

Sources say Anil Ambani has reportedly asked how Mukesh’s name appears as sole promoter of Reliance Infocomm, given that RIL is the principal funding source.

When contacted, Anil Ambani’s office declined to comment. A questionnaire sent to Mukesh Ambani’s office did not elicit any response.

Edited December 7, 2004 by Chirag

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Bajaj Hopes Ambani Brothers Will Smoke Peace Pipe

http://economictimes.indiatimes.com/articleshow/947383.cms

NEW DELHI: Leading industrialist Rahul Bajaj, who is close to the Ambani family, said today the two brothers Mukesh and Anil do not believe "others" have much role to play in settling their differences.

"I am sure the two brothers (Mukesh and Anil Ambani) will settle it within their family with the intervention of their mother Kokilaben both believe that others do not have much role to play," Bajaj said on the sidelines of the 'India Economic Summit' here.

"Mukesh and Anil are very matured. I am sure they will not take long to resolve the issue as both value millions of their shareholders," he said.

He said he would not like to broker peace but wished that they would bury the hatchet soon.

On November 25, Bajaj joined the list of the friends of the Ambanis by making an effort for bringing peace among warring brothers.

Bajaj met Mukesh Ambani in Mumbai but refused to comment on what transpired and what was his advise was to the elder brother.

The fight between the two brothers had become public last week when Mukesh Ambani admitted before a TV channel that there were some "ownership issues" in the Reliance group but these were in private domain.

Edited December 7, 2004 by Chirag

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'ego Was The Genesis Of All Our Troubles': Anil

http://economictimes.indiatimes.com/articleshow/946137.cms

Karmayogi was my father Dhirubhai Ambani's other name. He was a man of action. But as a true follower of the Bhagavad Gita , he acted not for himself, but for humanity. In the true spirit of nishkam-karma , he remained free from attachment to the fruits of his action. Like a true bhakta , he attributed his good actions to the Lord of all souls.

The Gita is the essence of Krishna's message. Its wisdom and fundamental truths are eternal, guiding man through life by revealing the purpose of human existence. The timelessness of its teachings applies to all beings, helping them lead a divine life. The Gita , imparted directly to Arjuna by the Lord himself, calls for virtue and glory, truth and character, but, above all, for an unconditional surrender to God. "Come unto me for refuge", says Krishna. But the discerning have always realised that such an attitude of trust is only possible if it is not limited to the relationship between the human and the divine. Since the divine is an aspect of all of us, trust has a central place in all our relationships.

Among the many human failings, the one that is most destructive of trust is arrogance, which is rooted in the illusory reality of 'I' or 'ego'. The source of human ignorance and error lies in not being able to recognise that the individual atma or soul is but a part of Paramatma — the Omnipotent, Omnipresent and Omniscient. There can be no 'I' or 'ego' in atma , because that will set it farther apart from Paramatma . There is scarcely another human weakness that Krishna focuses on with greater urgency or insight.

Ego is the source of all our troubles. It is, as the divine text puts it, the feeling of separateness, the sense of duality, the idea of being distinct and different from others. It is an arrogant and obsessive sense of ownership, the passion of sakam , that has lost touch with dharma. Humility then is neither a sign of human weakness nor just another polite virtue. It is the essential foundation for building everything that is just, lasting and permanent. "Of creating without claiming", as the Tao Te Ching puts it, "of doing without taking credit, of guiding without interfering". This was the abiding truth which guided the life of Dhirubhai. He never saw himself as an owner.

Edited December 7, 2004 by Chirag

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http://economictimes.indiatimes.com/articleshow/944198.cms

NEW DELHI: Directors of Reliance Industries have suggested Ambani brothers to sort out their dfferences by sitting across the table instead of corresponding through e-mail.

"We (Directors of RIL) do not find the mode of e-mail suitable. Instaed of e-mail it should be love mail. It is better to sit and talk," Y P Trivedi, Director of RIL and one of the mediators on the spat between Mukesh and Anil Ambani told Aaj Tak.

"One brother should talk to another with love and understanding. Love and feelings cannot be communicated by dry mail. We (directors of RIL) have told them to sit and talk and if there is any need we are here and ready to help," he said.

Trivedi felt there could have been a breakdown in communication between two Ambani brothers.

He said entire country is worried, 3.0 million shareholders of Reliance are worried, tax collectors are worried and the board is worried as to why and how differences among the two brothers cropped up. "This should not have happened," Trivedi added.

"We have seen Dhirubhai Ambani struggle to create an empire. The empire has to be taken forward. He (Dhirubhai) had a vision," he said.

[deepu 0]

Family seeks details from Mukesh

NEW DELHI: In a new twist to the ongoing tussle for control of the Rs 90,000-crore Reliance empire, the rest of Ambani family has asked RIL Chairman Mukesh Ambani to furnish "appropriate details" of the ownership issues, which he claimed were settled by family patriarch Dhirubhai during his lifetime.

Family sources confirmed that over the weekend the "Ambani family", including mother Kokilaben and sisters Dipti and Neena requested Mukesh to furnish appropriate details as per his statement on November 22.

Seeking to quell the raging controversy over his tussle with younger brother Anil, Mukesh had said last month that all "ownership issues" were "settled" during the lifetime of late Dhirubhai Ambani.

"My remarks (on ownership issues) were torn out of context. Dhirubhai Ambani has settled all ownership issues pertaining to Reliance within his lifetime," he had said in a statement.

"It is necessary to remove the confusion caused by deliberate misinterpretation or genuine misunderstanding. Therefore, I would like to set the right straight," he had said in that statement.

According to sources, the "family's" view was that if Dhirubhai had settled all the "above" issues in his lifetime, members would abide by his decision.

There was no reaction from Mukesh's camp on the missive from the other side.

[Ashokjp 15]

Cant get to know who is right !

Mukesh or Anil ?

Kinda confusing story..

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http://economictimes.indiatimes.com/articleshow/949094.cms

NEW DELHI: Anil Ambani is not in a mood to fight — or go to the courts. Perhaps, he knows that in some ways it’s a losing battle — with big brother Mukesh asserting his control within the house that Dhirubhai built. Anil Ambani also knows that that he can do very little, other than, as he wrote in Speaking Tree on Saturday in The Times of India, “perform his duties or nishkam kartavya”.

Now playing at Sea Wind, the official residence of the Ambanis in Mumbai: Dewaar. Mukesh has got everything — Infocomm and Reliance Capital (Anil is not even on the board of these companies); control of the all-powerful RIL and, in a way, even Reliance Energy.

The message to his brother Mukesh is clear: I’m willing to take the backseat as long as you don’t ask me to get off the bus. “Mukesh wants to run Infocomm, please let him go ahead and do it; I’m happy with Reliance Energy. All I am saying is that let’s work together — he’s the chairman, let him run 70% of the business. Let me run 30% of it...” Anil is believed to have told a family member recently.

Mere paas Ma hai: Ambani Jr has been confiding in friends and relatives. He’s under oath from Kokilaben, wife of the late Dhirubhai, not to talk to the press — definitely not on record — and let Mukesh behave the way he does.

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http://economictimes.indiatimes.com/articleshow/948602.cms

VARANASI: Religious preacher Morari Bapu has ruled out mediating between the Ambani brothers Mukesh and Anil on Reliance ownership issue and said he would pray for the siblings to resolve their disputes in an amicable manner.

"I have no intention to mediate in the dispute between the Ambani brothers but will definitely pray for them so that they are able to resolve their problems on their own," he told reporters last night in reply to a question.

"The Ambani brothers' mother Kokilaben had met me some time ago to invite me for rendering a religious discourse at their house in Mumbai early next year," Bapu said adding she had not sought his intervention for resolving the ongoing tussle between her two sons.

On the arrest of the Kanchi Shankaracharya Jayendra Saraswati, the religious preacher declined to comment when asked if Tamil Nadu government was justified in arresting the seer in connection with a murder case but said referring to the ongoing case against him that "law should take its own course."

Bapu said the Shankaracharya "should have been treated in a dignified manner in keeping with his stature as a religious leader."

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http://economictimes.indiatimes.com/articleshow/948105.cms

MUMBAI: It is one of the most in-your-face questions for most Reliance shareholders: Does Mukesh Ambani possess any written proof of his claim that Dhirubhai had settled all ownership issues in his lifetime?

The rest of the Ambani family — mother Kokilaben and sisters Dipti and Neena — has asked RIL chairman Mukesh Ambani to furnish “appropriate details” of the ownership issues, which he claimed were settled by family patriarch Dhirubhai during his lifetime, reports PTI, quoting family sources.

According to sources, the “family’s” view was that if Dhirubhai had settled all the “above” issues in his lifetime, members would abide by his decision. There was no reaction from Mukesh’s camp on the missive from the other side.

Some corporate observers feel that Reliance shareholders should welcome the three ladies to step in at this phase of the Mukesh-Anil stand-off. After all, in the most professional of companies, it’s the ‘family board’ that acts as the super board, often ruling in the best interests of all stakeholders.

Even if not all three, Kokilaben can play a crucial role in the coming days to restore peace between Ambani & Ambani. “The invisible and seamless functioning of the family board may not be legal, but its presence cannot be ignored in any big company,” a friend of the family told ET.

Mukesh, in a statement last month, had said that all “ownership issues” were “settled” during the lifetime of the late Dhirubhai Ambani. “My remarks (on ownership issues) were torn out of context. Dhirubhai Ambani has settled all ownership issues pertaining to Reliance within his lifetime,” he had said in his statement.

We’ve got over 10 pages of suggestions in indiatimes.com from readers and GenNet on how the two brothers should kiss and make up. The nature of advice ranges from the serious to the sombre, from the zany to the ludicrous. You can join the peace-keeping force by logging on — and casting your vote.

[Basant 0]

Going by press reports it is the Reliance Infocomm which is root of all problems between Mukesh and Anil. The real ownership structure of Infocomm is said to be a mystry.

If the fight intensifies, would it affect Infocomm and its customers?