The Hindu : Front Page : Vodafone set to acquire Hutch

Online edition of India's National Newspaper
Monday, Feb 12, 2007
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Vodafone set to acquire Hutch

U.K. telecom giant values Indian operator around $19-20 billion

London/Mumbai: U.K. telecom giant Vodafone on Sunday appeared all set to acquire India's fourth largest mobile venture, Hutchison Essar, for an estimated enterprise value of $19-20 billion as it emerged the top bidder for Hutchison Telecom's majority stake in the venture.

Vodafone, headed by India-born Arun Sarin, is understood to have pipped the Anil Ambani group company, Reliance Communications; a consortium led by the NRI group, the Hindujas; and Indian conglomerate Essar, which has 33 per cent stake in the venture.

The winner emerged at the Hutchison Telecommunications International Ltd's board meeting at Hong Kong, convened for considering the four bids for its 67 per cent stake put on the block late in 2006.

While there was no official communication from either HTIL or any of the aspirants, sources indicated that a formal announcement could be made late in the night.

Essar, which put in a bid along with the condition that it had the "right of first refusal" to enable it the option of matching the top bid, may be mulling the tag-along clause to sell its stake to Vodafone or its Indian associates.

There was, however, no communication from Essar, whose top brass is camping in London, the headquarters of Vodafone, sources said, indicating that a delay in a formal announcement could be on account of last minute consultations on the position being taken by the Indian partner in the venture.

Both HTIL and Vodafone spokespersons did not respond to repeated queries on the reports of the U.K. telecom firm's emergence as the top bidder.

During his recent visit to India to assess the regulatory and related issues, Mr. Sarin had said he was open to partnering Essar, while dubbing the Indian conglomerate as a natural ally because of their stake in Hutch-Essar.

PTI

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