“They can now focus on business rather than court battles,” Jagannadham Thunuguntla, head of equity at SMC Capitals Ltd. in New Delhi, said by telephone.

1. Reliance shares climb after end of billionaire family feud
Mukesh Ambani's Reliance Industries Ltd. and companies controlled by Anil Ambani surged in Mumbai,
adding US$5 billion in market value, after the brothers moved to end a five-year feud that split India's
second-biggest group.
Reliance Industries, operator of the world's largest refinery, gained as much as 5.4 percent, Reliance
Infrastructure Ltd. rose 12 percent and Reliance Communications Ltd. advanced 13 percent, the three
biggest advances on the Sensitive Index.
Mukesh, 53, and 50-year-old Anil issued almost identical statements Sunday saying they were “hopeful
and confident” of creating an “environment of harmony, co-operation and collaboration” after ending a
2006 accord to not compete.
The agreement frees up the world's richest brothers to invest in sectors including finance, telecoms and
energy and support India's target of spending US$1.5 trillion over the next decade building infrastructure.
The spat held up road projects in Mumbai, a power station intended to curb blackouts in New Delhi and a
merger with Africa's biggest mobile-phone company.
“The two groups now get the opportunity to invest in many more businesses which were closed to them
before,” P. Phani Sekhar, who manages funds for wealthy individuals at Angel Broking Ltd., said by
telephone from Mumbai. “Overall, the announcements are directionally positive because of the firm steps
being taken toward a final truce.”
Monday's rally extended gains in the Reliance group companies that have more than tripled since the
feuding brothers broke up the family enterprise. The six publically traded companies had a market value
of US$97 billion Monday, compared with US$29 billion on Jan. 17, 2006, the day before the spilt.
The rapprochement comes after India's Supreme Court on May 7 ordered the two groups to resolve a
disagreement over supplying gas from India's largest field that Mukesh controls. The brothers will now
negotiate a pact to ensure Anil's Reliance Power Ltd. gets the fuel it needs to build gas-fired projects.
The boards of both groups agreed to scrap the 2006 non- compete agreements and negotiations will
“eliminate any room for further disputes,” they said in statements Sunday. The groups will have “greater
ability to participate in high growth sectors of the Indian economy, such as oil and gas, petrochemicals,
telecommunications, power, and financial services,” according to the statements.

2. “They can now focus on business rather than court battles,” Jagannadham Thunuguntla, head of
equity at SMC Capitals Ltd. in New Delhi, said by telephone.
Reliance Industries shares gained 3.6 percent to 1,031.40 rupees at 1:46 p.m. in Mumbai compared with
a 1.1 percent increase in the benchmark Sensitive Index. Reliance Infrastructure, the Anil Ambani-
controlled builder of a mass rapid transit system in Mumbai, added 72.9 rupees to 1,062 and Reliance
Communications rose 13.35 rupees to 146.6 rupees.
Reliance Power climbed 10 percent, Reliance Natural Resources advanced 22 percent and Reliance
Capital Ltd. rose 5.1 percent.
In the years since the two brothers split the empire founded by their father, the late Dhirubhai Ambani,
their battle over the price of natural gas from Reliance Industries assets halted plans for a major north
Indian power plant, while a merger between Anil's Reliance Communications and South Africa's MTN
Group Ltd. was scuttled after Mukesh said he had the first right to buy shares in his brother's company.
Reliance Industries had a market value of US$69.4 billion as of May 21. Reliance Infrastructure was
valued at US$4.75 billion, Reliance Power at US$7.09 billion, Reliance Communications at US$5.86
billion, Reliance Natural Resources at US$1.55 billion and Reliance Capital Ltd. at US$3.36 billion,
valuing the five Anil Ambani group companies at US$22.6 billion. Their combined companies had a
market value of US$97 billion Monday.