The Reliance Communications (RCOM) share price fell by 1.52 percent on Monday, owing to the family row within the Ambani family over Mukesh Ambani’s right to acquire a majority stake in RCOM.

RCOM has been in collaborative talks with the South African telecom giant MTN, and this move from the elder brother is seen as an effort to derail the talks.

RCOM shares opened at $12.7 (Rs 545), higher than the previous close at $12.66 (Rs 543.35), and went on to reach $12.8 (Rs 549.70). But, the scrip couldn’t maintain this high, and closed at a low of $12.37 (Rs 531), trailing 1.52 percent.

The slide in share price was not unexpected, as it was the first day of trading after the dispute broke out between the Ambani brothers late Friday.

Reliance Industries (RIL), headed by Mukesh Ambani, had earlier claimed that as per a family pact, it had first refusal of a majority stake in RCOM on putting it up for sale. But Reliance Anil Dhirubai Ambani Group (RADAG), headed by younger brother Anil Ambani, has refuted the claim.

RIL had earlier shot off a letter to MTN asserting its rights after RCOM and the South African company initiated talks on an operational merger. RCOM has threatened to take RIL to court, and denied the validity of the family pact. An official statement issued by Anil Ambani group clearly stated that the agreement, dated January 12, 2006, was illegally signed alone by RIL officials when RCOM was under Mukesh Ambani’s control.

MTN seems to be unmoved by the recent Ambani brothers’ dispute, declaring on Saturday that its merger talks with RCOM were still on track. X

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