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Reliance brothers consider peace pact
03 November 2011
Billionaire siblings Mukesh and Anil Ambani are in talks over a potential deal for telecom assets
Estranged Indian billionaire brothers Mukesh and Anil Ambani are considering collaboration in the telecoms industry, according to a report that has sparked off rumours that the brothers may merge their business empires.
According to the Financial Times, Reliance Industries, controlled by Mukesh Ambani, is in talks to use telecoms tower infrastructure owned by the Anil Ambani’s Reliance Communications to introduce Mukesh’s broadband and wireless internet services. The report added that Reliance Industries is not eyeing any share in Reliance Communications.
A deal would benefit Reliance Communications with more revenues, following failed attempts to offload its Reliance Infratel towers unit. The operator had a debt of about $7 billion at the end of March. In September 2010, GTL Infrastructure backed off from its $9 billion deal to acquire Reliance Infratel, which has 50,000 towers.
The Reliance group was founded by their father, Dhirubhai Ambani. He retired in 1986 but his sons disagreed and then split the group into two companies. Dhirubhai Ambani died in 2002.
According to the FT report there have been speculations that Mukesh Ambani could submit an offer to acquire Anil Ambani’s telecoms assets, as his company requires infrastructure for its internet business. Reliance Industries has already purchased Infotel, the lone firm that obtained permits for a countrywide 4G spectrum allotment. GTB
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