RIL approves buyback; first 'round' goes to Mukesh
Monday, December 27 2004 15:14 Hrs (IST) - World Time - 
Mumbai:
Mukesh Ambani, battling with Anil Ambani over control of the Rs 90,000 crore Reliance Group, today (Dec 27, 2004) appeared to have won the first round with the entire RIL (Reliance Industries Limited) board backing him fully on the controversial proposal for buy-back of shares and other issues, as the younger brother abstained during voting.
The board, meeting for the first time ever since the proxy war began through the media in mid-November, approved the buyback of shares at a price of upto Rs 570 per share and a provisioning of Rs 2,999 crores for the buyback scheme from its reserves of Rs 30,000 crores.
Spotlight: Battle of Ambanis
Anil, who abstained from voting, had earlier sharply attacked the buyback proposal, when he told reporters "that there is more than what meets the eye.
"I believe consulting on buyback is inappropriate as there are several other issues that need to be addressed. If you look at the recent run up at the stock prices after the announcement of buyback, I believe there is more than what meets the eye in terms of what is happening in the market place".
Discuss this topic
All the agenda items before the board, including those on Reliance Infocomm and Reliance Energy (REL), were passed.
When the discussions on Reliance Energy took place Anil Ambani excused himself on the ground that he headed the energy venture. He left the venue immediately after the board meeting ended.
In the run up to the board meeting, Anil's camp had given notice that it would raise issues relating to Reliance Infocomm and REL.
But, sources said there was no discussion on these two companies, which the rival camp had threatened to raise. The board approved certain proposals relating to these two companies without any discussion.
Meanwhile, market regulator SEBI (Securities and Exchange Board of India) has already begun assessing the matter in the wake of Anil's allegations.
PTI
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