M A I N   N E W S

Ambani Feud
Anil offers olive branch to Mukesh
Shiv Kumar
Tribune News Service

Mumbai, October 11
Anil Ambani today said he was willing to reach out to estranged elder brother Mukesh Ambani so they could resolve all disagreements cordially. The younger Ambani said he was attempting to reach out to Mukesh following a pilgrimage to Kedarnath and Badrinath.

“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 they can all be resolved in a matter of weeks, and will not require several months of discussions,” Anil Ambani said in a statement released to the media.

The industrialist said he had made the pilgrimage to Kedarnath and Badrinath with the aim of seeking God's blessings so as to reach an agreement with his older brother. "…I made this pilgrimage today in the hope of seeking divine intervention and blessings in trying to heal the wounds and in making a renewed effort to resolve, reconcile and reciprocate,” Anil Ambani said.

Anil Ambani admitted that several well-wishers had been at work trying to resolve the deadlock between the two brothers that had hurt the country's oil exploration business. "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,” the statement said.

Calling on his elder brother to reciprocate, Anil said he hoped for a "solution to all outstanding issues, with a generous heart, a willing mind, and an accommodating spirit".

"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. 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,” the statement said.

Anil added: “Over these past four 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.”

Mukesh questions truce offer

New Delhi, October 11
Rejecting the truce offer made by Anil Ambani to estranged brother Mukesh, RIL sources today said this was yet another attempt to present a corporate dispute as a family feud. Mukesh questioned its sincerity, without rejecting the proposal. Mukesh Ambani-led RIL, however, questioned the offer made in public domain, pointing out that Anil could have easily contacted his elder brother directly. RIL asked Anil to demonstrate his intentions were bona fide, adding it “welcomes this positive indicator and will not be found wanting in responding to it constructively”. The latest development comes days ahead of the start of hearing by the Supreme Court on October 20 on the differences of group companies of the brothers on supply of gas. Questioning the sincerity of the offer, the Mukesh Ambani-led Reliance Industry said the conduct of the ADAG made it difficult to believe that Anil had a real change of heart.

“Sadly, the conduct of R-ADAG so far makes it difficult for RIL to believe that Anil Ambani had a real change of heart. For last many years Anil Ambani indulged in a malicious campaign against RIL and its chairman (Mukesh),” RIL said in a statement. The campaign, it added, “reached its nadir in recent months through a vicious series of advertisements unprecedented in India’s corporate history”.

RIL said the “dispute under litigation is not merely a family matter”, which it charged Anil of trying to make, and said vital national interests were at stake.

“RIL does not belong to a family. It belongs to shareholders, to the associates who have made this journey possible and most importantly to the nation, India,” it said. — PTI

How the brothers fell apart

• July 2002 - Dhirubhai Ambani, founder of the Reliance business empire, dies. Mukesh Ambani becomes chairman & MD of Reliance Industries and Anil Ambani is made vice-chairman
• Nov 2004 - Feud between the brothers becomes public
• June 2005 - Family reaches a settlement to split the Reliance group in a deal brokered by mother Kokilaben
• 2006 - The formal split takes place, with Mukesh taking control of flagship Reliance Ind with interests in petrochemicals, oil and gas exploration, refining and textiles. He has since launched a retail venture

• Before the official split, Reliance Ind signed an non-compete agreement in January 2006 with the firms that were to be handed over to Anil but which at the time it still controlled