Wednesday, June 15 2005 12:14 Hrs (IST) - World Time -

New Delhi: An end to the bitter seven-month old battle between the Ambani brothers for the ownership of the Reliance business empire appeared imminent and an announcement about the settlement is likely to be made on July 6, the third death anniversary of their father and group founder Chairman late Dhirubai.

Reliance group chairman Mukesh and his younger brother Anil met last week as part of efforts to hammer out a settlement, under which flagship company Reliance Industries and Indian Petrochemcial Company Ltd (IPCL) would be retained by Mukesh, while Anil would get Reliance Energy Ltd (REL), Reliance Capital and Reliance Infocomm, sources in the know said today (Jun 15, 2005).

Day-to-day talks are being held between the two sides to work out details, based on which a formal announcement could be made on July 6 to end the fiercest battle in the corporate history of India.

The settlement is based on the formula suggested by ICICI Chairman and Ambani's family friend K V Kamath, who preferred IPCL and RIL going to one brother instead of splitting the companies.

Being keenly watched by the Government, the settlement process had gained speed during the last one month, knowledgeable sources said.

As part of the speeding up progress, Kokilaben, widow of the founder Chairman of Reliance Dhirubhai Ambani, is meeting the two brothers separately almost on a 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.

As per the broad understanding, new businesses of Reliance group that came into existence in the last few years would go to younger brother Anil while the parent company RIL and petrochemical venture IPCL would be retained 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 month that the two Ambani brothers were moving towards settlement and there was no need for any Government intervention in the family dispute.