Mukesh calls Board meet on buyback; ignores Anil
Monday, December 20 2004 18:46 Hrs (IST) - World Time - 
New Delhi:
In a new turn to the raging battle between the Ambani brothers, flagship company Reliance Industries (RIL) Chairman Mukesh Ambani today (Dec 20, 2004) called a Board meeting on December 27 to consider buyback of shares, ignoring younger brother Anil's demand that the Board discuss the contentious Rs 12,000 crore investment made by the company in
Reliance Infocomm.
Spotlight: Battle of Ambanis
For the first time since the family feud became public in November, the RIL Board will meet at the company's headquarters at Makers Chambers in Mumbai at 11:00 hrs (IST) a week from now with a one point agenda "to consider, inter-alia, proposal for purchase of company's own equity shares, that is buyback of shares."
Anil, the company's Vice-Chairman and Managing Director, had sought a Board meeting to discuss the investment of Rs 12,000 crore in Reliance Infocomm since July 2002, besides future of Reliance Energy Ltd, where RIL has majority stake. He had written to his elder brother on December 6 in this regard.
Instead, Mukesh has summoned the Board only to discuss buy back of equity, perhaps up to 10 per cent of it, which should arrest the steep fall in the share price.
Discuss this topic
RIL shares have already fallen by over 9 per cent resulting in erosion of about Rs 6,000 crore in its market capitalisation.
However, it was not clear as to what position Anil Ambani would take on the issue of buyback of shares from the RIL's reserves, estimated at over Rs 30,000 crore.
RIL could buy the shares at a premium over the prevailing market rates, sources said.
PTI
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