It’s been a War Zone with no holds barred between the Ambani Brothers after their father expired in 2002…It led to a Demerger of the Group in 2005 and shareholder wealth zoomed
There have been evident reconciliatory moves between the brothers in recent months…clearly some thaw is visible and they appear to be moving the Hatchets away from each other to bury them….it’s probably because there’s appears to have been a falling out between diehard loyalist Anand Jain ( promoter of Jai Corp and SEZs) and Mukesh Ambani…Jain has not been seen at Maker Tower IV or at Sea Winds in December 2008..and yes,he was very much in Mumbai
It’s a pity the Ambani brothers split…though shareholders were not complaining…Mewonders if they reconcile will their companies too merge back !?…Next Immediate Thought…if they do,then will shareholders wealth zoom again ! ?
Whatever ?…the stark reality is that in such challenging times when there is a global recession it would be foolish to waste scarce resources fighting each other…in a sense you are using shareholder resources to fight each other….Both brothers have had severe business reverses….It is strongly rumoured that Mukesh Ambani’s Reliance Group had contracted Crude Imports as throughput for their refineries at prices over US $ 100 per barrel in a rapidly rising price scenario in mid 2008…Prices have since nose dived to below US $ 50 per barrel…The Group has taken a huge hit on this accord…if this is the case,wonder how the Accounts will reflect this in the December and March Quarterlies and the Annual Reports for FY 2008/9 ?
Also the Share Prices of all Reliance Companies,whichever group, are always bobbing around as if they are in a witch’s cauldron and spells are continuously being cast on them…driven less by valuation and more by sentiment,expectations,contingent events,manipulation and rumours….they rise and even flare one day,only to dive down the next…..So it’s easy to see why they are a trader’s nightmare but an Insiders’ delight.
Accusations of Big Ticket Insider Trading,Misuse of Funds,Poor Corporate Governance and Unethical Business Practices continue to plague both the Ambani Groups
I was under the impression that once you become Big,you become Honest !