The end of a shareholder agreement between the Government and Reliance Industries Ltd., which was signed on the acquisition of Indian Petrochemicals Corporation (IPCL) in 2002, is leading to speculations on whether the one-time state-owned firm will be merged with Reliance Industries Ltd. The pact, signed in 2002, ran its course this month was signed between the government and the Ambanis, giving the Centre the right to nominate directors on the IPCL board and also decide upon which of the two directors it has on the IPCL board will preside over the AGM on June 27.
Reliance has acquired 26% in IPCL from the government for Rs 1491 crore in 2002 and another 20% through an open offer later. The company law is likely to govern the merger of IPCL with another Reliance firm if it will ever take place. Sparks of differences between the Ambani brothers were witnessed, when Anil quit the IPCL board and the manner in which his resignation was handled. IPCL came into focus when Reliance Capital had sold its stake in Reliance Petroinvestments - which controls 46% in IPCL.
08-Jun-05 
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