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Ambani brothers Gas dispute- Anil Ambani wishes to reconcile with brother Mukesh
By Steve Gavriliuc for CEOWORLD Magazine Updated:October 12, 2009
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Indian billionaire Anil Ambani sought to resolve a dispute with his older brother Mukesh Ambani over a natural gas contract from the nation’s biggest field a week before the Supreme Court starts hearing their lawsuit.
Indian shares rose 1 percent on Monday, led by Reliance Industries (RELI.BO) after the estranged billionaire Ambani brothers that control the Reliance empire spanning energy, telecommunications and financial services raised hopes for a resolution of disputes between the two.
The Reliance empire, which spans energy, telecommunications and financial services, was split between the brothers in 2005 following the death of their father, Dhirubhai Ambani.
The siblings have since been involved in several disputes, the latest over a deal for Mukesh Ambani’s Reliance Industries to sell gas to Anil Ambani’s Reliance Natural Resources at below-market rates as agreed in a 2005 family settlement brokered by their mother, Kokilaben.
Analysts say the government could push the brothers to resolve the dispute on concerns possible government intervention in gas pricing and sales could scare off investors and raise investment risk to a politically sensitive resource.
key dates in the Ambani rift:
July 2002 - Dhirubhai Ambani, founder of the Reliance business empire, dies. Mukesh Ambani becomes chairman and managing director of Reliance Industries Ltd, and Anil Ambani is made vice-chairman.
November 2004 - Feud between the brothers becomes public.
June 2005 - Family reaches a settlement to split the Reliance group in a deal brokered by their mother, Kokilaben.
2006 - Formal split takes place, with Mukesh taking control of flagship Reliance Industries, with interests in petrochemicals, oil and gas exploration, refining and textiles. He has since launched a retail venture.
The Anil Dhirubhai Ambani Group gets telecoms, power, entertainment and financial services. The Group includes Reliance Communications Ltd, Reliance Infrastructure Ltd, Reliance Capital Ltd, Reliance Natural Resources Ltd (RNRL) and Reliance Power Ltd.
July 2008 - Reliance Communications calls off merger talks with South Africa’s MTN after Mukesh makes a claim on the shares of Anil’s telecom firm.
June 15, 2009 - Mumbai High Court directs Reliance Industries and Reliance Natural to enter a gas supply agreement within a month.
July 1, 2009 - Reliance Industries says will appeal to the Supreme Court against High Court ruling.
July 19, 2009 – Indian government steps into the legal dispute, filing petition in the Supreme Court saying the gas is its property.
July 20, 2009 – The Supreme Court does not exclude the government from the proceedings. Court says will hear case on Sept. 1.
Aug. 28, 2009 - The Supreme Court website lists case hearing on Oct. 20.
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