sgiitk 32 Report post Posted November 2, 2010 Consider 1. that one of the triggers of the brother's breakup was Reliance Communications about which ADA was not too keen, and in the partition he inherited it. 2. Non-compete is no loner valid. 3. MDA has bought the biggest broadband licensee in India. What are the odds that MDA will also enter mobile telephony, and we may see Ambani vs Ambani in the marketplace in say 3-5 years time. I would say pretty high! Share this post Link to post Share on other sites
rajanmehta 4,056 Report post Posted November 2, 2010 Now Consider another highly improbable at the moment but imminently possible Scenario: -Market Cap of Reliance (Mukesh Ambani Group) and Reliance (ADA Group) separately is nearly four times as compared to the earlier single entity of Reliance which was holding everything. So basically for the same assets, they multiplied the market cap four times, added a huge fortune to their personal wealth and have additional borrowing leverage. -Mukesh Ambani sure bought the biggest broadband license in India but at the same time Mr. Anil was aware of it due to the Bhai-Bhai reunion and enlightened awareness about each other and so RComm did not bid for broadband spectrum. -Dhirubhai Ambani used to say i can even salute a peon and have no ego in doing so if it enhances my business prospects. Both brothers have grown up with the same philosophy and now unlike other business families, chances of their fighting each other is very slim. Non-Compete has gone but they would not like to compete with each other in such a ferocious manner where each will hurt other in a substantial manner. It may be co-operation under the table. -And i will not be surprised at all if one fine day we hear the annoucements that some companies of Mukesh Ambani and Anil Ambani are being merged with each other to create economies of scale, competitive advantage and finally that biggest benefit of again multiplying their market cap by 4 or more times. Stay tuned. Share this post Link to post Share on other sites
Greens 21 Report post Posted November 2, 2010 -And i will not be surprised at all if one fine day we hear the annoucements that some companies of Mukesh Ambani and Anil Ambani are being merged with each other to create economies of scale, competitive advantage and finally that biggest benefit of again multiplying their market cap by 4 or more times. Stay tuned. this is most probably going to happen, which will give sleepless nights to competition. May be good for the investors. Share this post Link to post Share on other sites
kshah 452 Report post Posted November 2, 2010 I have always believe break up is eyewash and that way they increased their net worth almost double immediately after break up. They may merge to quadrapulate can't say. Share this post Link to post Share on other sites
sgiitk 32 Report post Posted November 3, 2010 I agree consolidation has been one of the basic Ambani mantras for ages. My own guess is a bit different - MDA gobbles up on of the New Bachhas, sets up a good GSM footprint and then a few years down the line 'consolidation' occurs. I suspect the original foray into GSM took place to try and cut Qualcomm to size! They were demanding high royalties. We seem to agree that in the long (or rather no so long) term consolidation/ merger / whatever is a distinct possibility. Share this post Link to post Share on other sites
city02 63 Report post Posted November 3, 2010 I feel that since ADA is already trying to sell off the tower business [this year] and even the rest of RCOM [last year] He maybe open to MDA buying it back [next year] It will allow ADA to focus on financial services & entertainment verticals with which he seems more comfortable But he may choose to retain DTH [bigtv] for his upcoming TV channels which would feed the content via his platform However I don't think an outright merger is practical since there is a large disconnect between senior management Its tough for the generals to work together after 5 years of cold war despite the brothers kissing and making up in public Never underestimate the egos of the Presidents in the organisations! It would not be the 1st time that despite approval from their chairman certain initiatives failed to be implemented properly... Share this post Link to post Share on other sites
Sadikk 301 Report post Posted November 3, 2010 Well Mukesh ambani will be going full fledged war on data front... for voice only option with them is VOIP... and if they are planning LTE wait 3 years.. if wimax rollout can go in 6 to 9 monts.. samsung is their partner.. so all india wimax rollout along with data services VOIP handsets they can enter big time.. all my personal views.. Share this post Link to post Share on other sites
_Kailash_ 63 Report post Posted November 24, 2010 Mukesh Always had an eye on Telecom Bussiness but Anil and non competence was the hurdle.... Now he is the king.... Share this post Link to post Share on other sites
