Channels claim Reliance settlement, Company denies

Headlines Today and Aaj Tak, the India Today group's television channels, reported today evening that a "settlement" of the ownership and management issues between Reliance Industries Chairman and Managing Director Mukesh Ambani and the company's Vice-Chairman and Managing Director Anil Ambani had been arrived at on December 28, the 72nd birth anniversary of the group's founder chairman, the late Dhirubhai Ambani.

The channels said ICICI Bank's Managing Director and CEO KV Kamath acted as the mediator.

The channels also said Reliance Industries would be recast, not split into two. The Ambani brothers, Mukesh and Anil, would go for a legal separation of ownership, which would also involve their two sisters, they added.

According to an Aaj Tak press release, Kokilaben, the mother of the Ambani brothers, played a key role in bringing the two to the negotiating table.

The channels added that 34 per cent of Reliance Industries' equity -- the stake held by the investment companies of the Reliance group -- would be divided equally within the family.

However, another news channel, NDTV, denied the development.

A Reliance Industries executive said he "was not aware of any such move". Kamath was not available for comments.

However, a senior ICICI Bank executive told Business Standard Kamath was not playing the role of a mediator. Kokilaben is believed to be in Singapore now with one of her daughters. She left Mumbai after the birth anniversary of the late Dhirubhai Ambani.

Industry observers pointed out that had the settlement been arrived at on December 28, as reported by the TV channels, both the brothers would not have continued their fight through the media till Wednesday. Incidentally, Anil Ambani resigned from the IPCL board as chairman on January 3.