Earlier, the Junior Ambani has shown the white flag to Mukhesh, by announcing that RCom has virtually merged with RJio.
However, on the flip side off late there are strong rumours in th market that Mukhesh Ambani wants to lap up RCom at dirt cheap price, through an open offer by hammering its shares.
It is to be noted that, Anil and Mukesh Ambani, despite being brothers, have had a tumultuous relationship in the past.
The Telegraph writes on 14 January, 2017: It is a saga worthy of a Bollywood melodrama. The story of the Ambani brothers is one of vast fortunes and billionaire glamour, a bitter feud and a vicious business rivalry.
Now one of Britain’s biggest companies is caught in the crossfire of the 15-year battle between Mukesh Ambani and his younger brother Anil. Vodafone is suffering in India, to the tune of at least £4.4bn in write-downs so far, as the elder Ambani, India’s richest man, mounts a £20bn onslaught on the mobile market, hitherto Anil’s territory.
RCom had already signed a 17-circle airwaves sharing pact in the 800 Mhz band with Jio. It has also agreed to sell its 800 Mhz airwaves in nine service areas to Jio where the latter does not have spectrum in that band. But still it gives RCom an edge over RJio in the 800 MHz space.
Anyway, under the partnership announced earlier, RCom brings in most of the spectrum while Jio provides the network and much of the cash for conversion of the spectrum. The regulators should look into this aspect too; as the minority shareholders continue to suffer.