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05-27-2010, 06:34 AM #1
Ambanis Reunited – a Twist in the Tail!
The Share Market too is not left behind from the after effects of this reunion. The cancellation of non-compete pact left the shares of Reliance Industries and ADA group firm see some hike, as Dalal Street showed a positive outcome.
What next now? The companies owned by Ambanis contribute majorly to the Indian GDP and global market. Hence, the move would surely play a critical role in enhancing Indian’s economy and provide blessing to the people and capital associated with these companies.
According to Indian finance minister, Pranab Mukherjee, the news would turn out as a positive development for the Indian economy as a whole. Even the print media is not left behind. The Economic Times applauded it as front page news, stating that “Blood is thicker than Gas.” The two brothers have vowed to craft an ambiance of harmony, where they would cooperate in the upcoming future. It is surely great news for Indian business industry.
Mother Kokilaben is reported to have brought both the brothers together on one stage and allow them to revoke the previous agreement. What went behind this decision can turn out to be a rough guess from anyone’s kitty, but surely one cannot speculate as to what lies ahead for the relationship between both the siblings. Will they go on to resolve their family disputes too, and what about the much-hyped GAS issue? One thing is guaranteed, the so-called “reunion” would allow the negotiators from both the sides to deal with the gas-agreement in a subtle manner in the upcoming days.
But how can we look at this end of “no-compete agreement” in a broader perspective? Would investors become all set to invest in these two big power houses with huge ray of hopes? Or will they see it as just another fling of passing times or something of short-term gains?
However, under the agreement which was set in the year 2006, both the companies vowed on not to barge into the same sector, which would provide “operational and financial” adaptability to both the firms. But now both have nullified the same!