UPDATE 1-India's Anil Ambani says wants to resolve dispute

(Adds Reliance Industries comment in ninth graph)

MUMBAI Oct 11 (Reuters) - Anil Ambani called on Sunday for a renewed effort to end a bitter feud with his brother triggered by the carve-up of up a vast family business stretching from energy to telecommunications and financial services.

He said in a statement he believed "all disagreements can be sorted out in a constructive, cordial and conciliatory manner", and called for "a generous heart, a willing mind and accommodating spirit to resolve issues".

The row between Anil Ambani and his brother Mukesh has unnerved investors considering oil and gas exploration in India. [ID:nBOM453401]

Their latest dispute is over a deal for Mukesh Ambani's Reliance Industries (RELI.BO) to sell gas to Anil Ambani's Reliance Natural Resources (RENR.BO) at below-market rates as agreed in a 2005 family settlement to divide the business following their father's death in 2002.

The gas dispute has led to a near-daily exchange of words, and Anil Ambani has accused the Petroleum Ministry of taking the side of Reliance Industries.

The government has lodged a petition with the Supreme Court to intervene in the case, arguing gas is its property, and that the private pact is not valid.

The court, in a hearing on July 20, did not exclude the government from the case. [ID:nLL670596]. It is due to hold another hearing on the dispute on Oct. 20.

In his statement, Anil Ambani said others too wanted an end to the impasse, adding that there could be no better gift to the two brothers' mother, Kokilaben, who had brokered the 2005 settlement that has not been made public.

In response, Reliance Industries said it welcomed the statement, adding the dispute under litigation is not merely a family matter, and that it hoped "any overtures for rapprochement are in no way related to the ongoing hearing of the case".

This latest move towards reconciliation is expected to nudge up shares of some Reliance companies and boost market sentiment, said V.K. Sharma, head of research at Anagram Capital.

"There has been a lot of uncertainty lately, so this will have a positive impact and a temporary salutary effect on the market overall," he said.

"Then it will come down to details of any new settlement." (For a timeline of key dates in the feud, see [ID:nBOM482488]) (Reporting by Rina Chandran; Editing by Myra MacDonald)