Ambani withdraws $2B suit against New York Times
June 9, 2010 A Bombay High Court judge granted Anil's request to withdraw the
100 billion rupee ($2.1 billion) suit Tuesday, spokesman Gaurav
Wahi confirmed, though he declined to say why Anil had decided to
drop the litigation. Anil had not filed suit in the U.S.
Two Indian newspapers - DNA and Mint - which reproduced the 2008
article and the writer, Anand Giridharadas, were also among the
respondents.
The dispute focused on two paragraphs of the 4,421-word article,
in which Giridharadas wrote that Mukesh said Anil had run an
"intelligence agency" of lobbyists and spies to keep tabs on
bureaucrats and competitors.
Giridharadas, who is now pursuing a doctorate at Harvard,
declined comment and Times lawyers did not respond immediately to a
request for comment. A spokesman for Mukesh also declined to
comment.
The move comes amid an apparent detente in a bitter five-year
battle between India's richest brothers.
In late May, they declared a truce, saying they would scrap a
contentious noncompete clause in a family agreement after the
Supreme Court ordered them to renegotiate the terms of a gas sale
deal also enshrined in the family memorandum, which divided their
father's empire.
The Supreme Court decision put the future of Anil's gas broking
firm, Reliance Natural Resources, in peril, as the family contract
which guaranteed gas supply at below-market rates was its primary
asset, analysts said at the time.
But scrapping the noncompete clause has freed Anil to do
something he's long desired: Sell off part of his debt-laden
Reliance Communications, India's second largest telecommunications
company.
Mukesh blocked Anil's 2008 attempt to bring in an outside
investor - South Africa's MTN Group - through a share swap, saying
the noncompete clause gave him right of first refusal over Reliance
Communications shares.
Reliance Communications is now courting bidders like Etisalat,
AT&T and MTN Group to sell a 26 percent stake for some $4 billion,
which is about twice its current market value.