The Hindu Business Line : `Anil wanted to distribute 12% equity to RIL shareholders'

THE sibling rivalry between the two Ambani brothers has moved a step further with the younger brother Mr Anil Ambani's camp claiming that he had proposed that 12 per cent equity in Reliance Industries (RIL) held by Petroleum Trust and four companies be distributed free of cost among existing shareholders.

According to a spokesperson for RIL, the Vice-Chairman and Managing Director, Mr Anil Ambani, had said in his presentation to the RIL board meeting on December 27 that the 12 per cent stake held by Petroleum Trust and four companies whose ownership is also not very clear should be distributed as bonus shares free of cost to the more than 20 lakh shareholders of the company.

The RIL board, however, rallied behind the Chairman, Mr Mukesh, and passed the buyback proposal, ignoring Mr Anil's suggestions.

Commenting on news reports relating to the 12-per cent equity stake held by Petroleum Trust and four companies, the spokesperson said that, in his presentation at the RIL board meeting on December 27, Mr Anil Ambani had said that this stake belongs to more than 20 lakh shareholders of RIL.

The issuance of this equity as a free bonus will also be in line with the founder group patriarch Mr Dhirubhai Ambani's announcement at the 1997 annual general meeting, when the last bonus issue was announced, that RIL would have a continuous programme of bonus issue, generally once in five years.

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