Compromise may hold the key to Ambanis’ gas dispute: Analysts | delhi | Hindustan Times
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Compromise may hold the key to Ambanis’ gas dispute: Analysts

The solution to the protracted gas supply dispute between the two Ambani brothers that has reached the Supreme Court may come through a compromise, some analysts said, fearing that the row could well impact the stock prices of group companies of both.

delhi Updated: Jul 19, 2009 18:03 IST
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The solution to the protracted gas supply dispute between the two Ambani brothers that has reached the Supreme Court may come through a compromise, some analysts said, fearing that the row could well impact the stock prices of group companies of both.

“The issue (gas dispute) is vexed, therefore, and may eventually require a compromise. Pricing holds the key ...,” global research firm CLSA said in a research note.

Anil Ambani group firm RNRL and Mukesh Ambani-led RIL have filed cross-petitions in the Supreme Court challenging the Bombay High Court order and the matter will come up for hearing on Monday.

While RNRL wants immediate implementation of the order to get the gas at USD 2.3 per mmBtu, a price 44 per cent lower than the one fixed by the government, RIL says it cannot supply the industry fuel without the consent of the government.

Incidentally, the global spot price of the gas is hovering at around USD 3 per mmBtu though the long-term contract price is ruling higher at USD 8 per mmBtu.

The shares of Reliance Industries have gained over 10 per cent this week to settle at Rs 1,933 on the Bombay Stock Exchange on Friday, while the Anil Ambani group firm Reliance Natural Resources Ltd (RNRL) stock gained 22 per cent to Rs 82.65 in the week.