Ambanis to conclude settlement by year-end?

06-Jun-05

Is one of the fiercest battles in India's corporate history coming to an end, as the Ambani brothers end the proxy war through media and maintain silence? The ICICI Chairman K.V. Kamath and Kokilaben Ambani have both indicated that they would like the settlement process to be concluded by June, indicating a meeting in the near future between Mukesh and Anil on the settlement issue. This has resulted in the speculation that the broad outline of a settlement in the ownership battle between the two Ambanis could be formalised within the next six weeks. However, neither side is willing to comment on the settlement process and progress. Kamath aided by investment banker Nimesh Kampani of J M Morgan Stanley for evaluation of group companies and family assets, has reported to have fixed a value to about Rs 25,000 crore for Infocomm and up to Rs 800 a share for RIL equity in- the dominant issue in the negotiation process. As per a broad understanding, new businesses of Reliance group that came into existence in the last few years would go to younger brother Anil while the parent company RIL and petrochemical venture IPCL would be retained by Mukesh. Anil will get Reliance Capital along with Reliance Energy and Reliance Infocomm. The first of the announcements about the settlement could be made in the coming 4-6 weeks, although restructuring of group companies and legal formalities could take six months.