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Vodafone to adhere to M&A criteria

New suitor Hindujas for Hutchison Essar to take decision by month-end

LONDON: British telecom giant Vodafone has sought to allay investors' concerns over any overpayment in its bid to acquire Hutchison Essar, saying any deal will be in line with its stated merger and acquisition criteria.

Following reports about some shareholders expressing concern, Vodafone might overpay in the highly-contested battle, a company spokesman said: "Any acquisition would fit with our published financial mergers and acquisition criteria.''

Heated race

Vodafone has vowed not to breach the strict financial criteria introduced by its Chief Executive Officer Arun Sarin last year despite the over-exuberance in a heated race, sources close to the company said.

The company's defence about adhering to the M&A criteria comes amid the battle for India's fourth-largest mobile operator intensifying with another suitor — the Hinduja Group — joining the fray along with India's Reliance Communications. Hindujas optimistic

The Hinduja Group, the new suitor for Hutch-Essar, has claimed to have received favourable response from the joint venture's foreign partner Hutchison Telecommunications International Ltd. (HTIL) and expects a decision by this month-end.

"We have received a favourable response from Hutch. They have welcomed our interest and are waiting for our proposal. A decision will be taken by the end of this month,'' Gopichand Hinduja, President of the Hinduja Group, told PTI.

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