Sunday, June 5 2005 12:44 Hrs (IST) - World Time -

New Delhi: The broad contours of a settlement in the ownership battle between Mukesh Ambani and younger brother Anil are understood to have been worked out and are expected to be formalised within the next six weeks.

The first of the announcements about the settlement could be made between four and six weeks although restructuring of group companies and legal formalities could take six months.

Being keenly watched by the Government, the settlement process has made speedy progress during the last one month to end the fiercest battles in the country's corporate history, knowledgeable sources said today (June 5, 2005).

As part of speeding up the progress, Kokilaben, widow of the founder chairman of Reliance Dhirubhai Ambani, is meeting the two brothers separately almost on daily basis, they said.

Contrary to media reports about the confusion over who would get Reliance Capital, the sources indicated that the company operating in the market is set to go to Anil along with Reliance Energy and Reliance Infocomm, headed by Mukesh.

Possibilities of a merger between RIL and IPCL in future could also not be ruled out.

Keenly watching the progress on the largest corporate house in the country, Finance Minister P Chidambaram said last fortnight that the two Ambani brothers were moving towards settlement and there was no need for any Government intervention in the family dispute. "Both Mukesh and Anil talk to me from time to time and I advise both to settle their dispute quickly...Looks like they will reach a settlement," said Chidambaram, who is understood to be apprised of the progress by Ambani siblings regularly.

Along with the Finance Ministry, the Ministry of Company Affairs has been keeping a tight watch on the developments, with sources saying that the two brothers have communicated to the Government their willingness to put behind their past.

Sources, however, said that Mukesh and Anil are yet to meet formally on the settlement issue but indicated that once the finer details of the deal was worked out the two could meet before the process of formal announcements is initiated.

ICICI Chairman and Ambani family friend K V Kamath, who has been working on the evaluation and settlement formula, broke his silence a few days ago saying that the brothers were matured and intelligent and would find a way out.

It is learnt that Kamath and Kokilaben have indicated to both Anil and Mukesh that they would like the process to be completed by June.

After the sharp attacks from Anil and his camp a few days before the crucial meeting of RIL Board, including the younger sibling questioning the locus standii of a cousin and Mukesh camp follower Nikhil Meswani in the family affairs, the two sides have virtually ended the proxy war through media and maintained silence. However, neither side is willing to comment on the settlement process and progress.

Even as the negotiations are in full swing, movement of top executives within the group has already started. Some of the close lieutenants including Manoj Modi have already moved away from Reliance Infocomm.

Most of the executives who had opted to work with Mukesh Ambani in Delhi and Mumbai have been absorbed in the parent company RIL's new oil and gas business, sources said, indicating that Manoj Modi is getting into retailing business like setting up of petrol pumps and a new venture or retail outlets on the lines of US retail giant Wal-Mart.

The group's HR Chief V B Bhatt had asked the top executives of Infocomm in April itself to make their choice clear on whether they would like to revert to parent company or continue in their present position in case the company, headed by Mukesh, goes to Anil.

Along with this RIL had provided a few weeks ago details of borrowings and other financial parameters to younger Ambani to enable him make an assessment of the company, sources said, adding that a broad evaluation of the companies by Anil's team is in advance stages of completion.

These developments follow Kamath's recommendations a few months ago that one brother keep RIL and IPCL while the other gets REL, headed by Anil, along with Reliance Capital and Infocomm.

In his report, Kamath aided by investment banker Nimesh Kampani of J M Morgan Stanley for evaluation of group companies and family assets, is reported to have fixed a value to about Rs 25,000 crore for Infocomm and upto Rs 800 a share for RIL equity, an issue that dominated the negotiation process.