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Now, Ambanis spar over shareholders

Ambani brothers traded fresh accusations in the name of firm's 3 million shareholders.
PTI | By Press Trust of India
UPDATED ON JAN 06, 2005 07:59 PM IST

In the continuing Reliance ownership saga, the Ambani brothers on Wednesday traded fresh accusations, all in the name of the company's shareholders numbering about three million.

Younger brother Anil Ambani, vice-chairman of the parent company Reliance Industries Limited (RIL), made public yet another instalment of the proposals he had mooted at the December 27 Board meeting, which had solidly backed his brother and chairman, Mukesh Ambani.

Anil, through his spokesman, said that in a presentation to the Board, he had proposed that 12 per cent equity of RIL held by the company's Petroleum Trust and four companies, whom he did not name, be distributed free among the shareholders. Ignoring this, the Board had, instead, approved Mukesh's proposal for buyback of shares.

Sources close to Mukesh responded by saying it was Anil who had suggested that the 12 per cent stock be kept as treasury stock when the merger of RIL and Reliance Petroleum Limited (RPL) took place in 2002.

Anil had suggested in the December 27 Board meeting that the maximum price for the buyback of shares should be only Rs 450 against the chairman's figure of Rs 570 which was approved by the board, the sources said.

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