| The world's largest mobile phone company Vodafone | | | | is trying to gain a foothold in the Indian market that is |
| on Friday officially announced that its was looking to | | | | growing at a rate of more than 50 lakh new |
| acquire a controlling stake in India's Hutchison-Essar, | | | | subscribers every month. |
| ending a week long speculation about its intentions. It | | | | In a separate statement Hutchison also for the first |
| announced announced its readiness to buy 'in cash' | | | | time confirmed that it has been approached by various |
| Hutch-Essar, India's fourth largest mobile operator being | | | | potentially interested parties regarding a possible sale |
| valued up to $17 billion. It becomes the first player to | | | | of its equity interests in Hutch Essar, the company's |
| throw the hat in the ring. | | | | mobile operations in India. It said "No agreement in |
| PTI has quoted the group's media relation director | | | | respect of such possible sale has been entered into up |
| Bobby Leach as saying Vodafone as saying that it | | | | to today's date." Hutchison said "There is no assurance |
| "would fund any consideration in cash.. UBS are our | | | | that a sale may result from these approaches." |
| advisors and have been advisors on a substantial | | | | As well as in India, Bharati Airtel on Friday said that |
| number of transactions for Vodafone" He was asked | | | | Vodafone has informed the company about its interest |
| about the financial arrangements and advisors for the | | | | in making a bid to acquire Hutch.Vodafone has a 10 |
| Indian venture, where Hong Kong-based HTIL has 67 | | | | per cent stake in Bharti and will have to exit from |
| per cent equity. Neither the 23.7 billion ponds | | | | Bharti if it takes over Hutch. Bharti however was silent |
| (Rs.2,06,625 crores revenue)Vodafone nor other | | | | on the non-complete clause and did not disclose |
| contenders have made a formal bid for Hutch-Essar | | | | whether it was considering to waive the non-compete |
| Ltd (HEL), with sources indicating that both Vodafone | | | | clause with Vodafone or whether Vodafone has |
| as well as Reliance Communications are waiting for | | | | started talks to sell its stake. |
| the other to make a move first. | | | | As per the non-compete clause, Vodafone cannot |
| Earlier in the day, Vodafone posted a statement on its | | | | operate in the same circles where the Airtel is |
| website which said that it has noted recent speculation | | | | functioning till one year from the date of ending the |
| regarding a potential acquisition of Hutchison Essar in | | | | agreement between the two companies the Ruja's of |
| India. "The board of Vodafone continues to believe the | | | | Essar are still maintaining a stony silence, sticking to the |
| mobile market in India has great potential and is | | | | stand that they are not selling. Most of the people is |
| therefore considering the acquisition of a controlling | | | | going to famous brands in the world. |
| interest in Hutchison Essar," the statement said. | | | | Mr.Ravi Ruia, vice-chairman of Essar had been in |
| It further said that "such a transaction would be | | | | London this week and though the company |
| consistent with its stated strategy of seeking selective | | | | spokesperson denies it is in connection with the |
| acquisition opportunities in developing markets. "it | | | | Vodafone developments, sources say that Vodafone |
| however noted that "the process is at an early stage | | | | has been in talks with them. Sources say that they |
| and may or may not lead to a transaction." A further | | | | would rather partner with or sell out to Vodafone, than |
| announcement will be made in due course," it said. | | | | sell to Reliance. Reliance has become silent in the last |
| Vodafone is expected to come up with a formal bid | | | | two days and is expected to show its cards after |
| any time on Friday, say sources. With European | | | | Vodafone declares its bid price for Hutch. |
| markets nearly reaching the saturation point, Vodafone | | | | |