/24-7PressRelease.com/ - New Delhi, India, May 19, 2005 - ICICI chairman K V Kamath, who is mediating in the feud between the Ambani brothers, recently gave a handsome compliment to both the brothers. In a TV interview, he said a settlement between the two brothers would certainly be reached, as both of them are 'extremely mature and intelligent.'
Kamath has, indeed, been somewhat even-handed in his remark, understandably because of his delicate position as a mediator.
Although, Anil Ambani is the vice-chairman and managing director of RIL, he openly criticized the company and its directors before and after every board meeting. He resigned from the chairmanship of Reliance Energy on the specious plea that it was below his dignity to serve on a board on which Anand Jain, an old friend of Mukesh, sat. Although as a goodwill gesture he was requested by the REL board to reconsider his resignation, he put forth some more conditions. And finally, he made a big corporate governance issue out of his resignation having been accepted.
While he harped on corporate governance lapses in RIL and Infocomm, he himself transcended all limits of good governance by doling out huge funds from Reliance Capital to a certain sections of the print and electronic media to buy their support in his war against his elder brother.
Because of these sordid events, the Reliance feud will go down in history as one of the most acrimoniously fought corporate wars over ownership and control of paternal business.
One is tempted to accept Kamath's remarks in the hope that the brothers will at least now prove themselves worthy of the compliment paid to them.
In any settlement, it is always 'give and take.' But in the present case, while Anil has been jacking up his demands, Mukesh has been too liberal in meeting his demands. He renounced the sweat equity in Infocomm that legitimately belonged to him as the promoter of the company. He is also reported to have agreed to give Anil the sunrise business of Infocomm that he had assiduously built and was so dear to him. Whether Anil will respond to these concessions made by Mukesh is to be seen.
But Anil is still haggling over the price of RIL shares in order to extract the maximum possible price from Mukesh. His attention is also riveted on the risk factors and future prospects of Infocomm. But he must remember that the petroleum business that is going to be Mukesh's lot is much more risky.
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