Friday calm as pressure grows on Reliance to start peace process

While there were no fresh developments in the Ambani feud on Friday, efforts are on to defuse the edgy face-off between the two camps. It he...

While there were no fresh developments in the Ambani feud on Friday, efforts are on to defuse the edgy face-off between the two camps.

It helped that the stock markets were shut thanks to a public holiday. Investors got some much-needed respite after seeing a Rs 8,000-crore fall in market capitalisation in Reliance group shares since the controversy began.

The impetus behind trying to find a solution stems from pressure to announce something positive before the markets open on Monday. But by all accounts, after a week8217;s warfare 8212; which saw a flurry of letters, assurances, resignations and protests 8212; calm descended in both camps.

Mukesh Ambani, chairman and MD of Reliance Industries, met some of the directors of the company today. Independent directors on the RIL board had already indicated that they would not do anything to precipitate the crisis.

Bajaj group chief Rahul Bajaj had met Mukesh Ambani on Thursday night. However, he refused to discuss what transpired between the two.

At the same time, financial institutions 8212; which hold 22 per cent stake in Reliance Energy and 8.77 per cent stake in Reliance Industries 8212; are expected to meet next week to discuss developments in the group. FIs were earlier running the show at REL when it was known as BSES before the Ambanis took over the company. Incidentally, FIs do not have any nominees on the RIL board. 8220;We8217;re watching the developments,8221; said an institutional source.

Meanwhile, the Reliance Energy board has not taken any decision on the resignation of six directors. Anil Ambani had indicated yesterday that the resignations of the six directors would be considered at an 8216;8216;appropriate time.8217;8217;

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On the other hand, an official of Reliance Industries said the company has not been informed of the resignations of six directors till Friday. The top brass of Reliance Industries reiterated that it was taken by surprise by the resignations.