Reliance Communications to raise funds for Hutchison Essar bid |
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Wed, 10 Jan 2007 14:22
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LONDON (AFX) - Reliance Communications Ltd, which is seeking to acquire a controlling stake in Hutchison Essar, reaffirmed its interest by authorizing its chairman Anil Dhirubhai Ambani to raise long term resources.Reliance Communications has informally expressed an interest in acquiring a 67 pct stake in Hutchison Essar, India's fourth largest telecom operator, which is currently owned by Hong Kong-based Hutchison Whampoa.In a statement to the Bombay Stock Exchange after a board meeting, Reliance said the company's options include raising funds through external commercial borrowings.Other serious bidders for Hutchison Essar include Vodafone Group and India's Essar Group. Vodafone is expected to announce a formal bid for Hutchison Essar soon.Analysts have put a value of between 18-20 mln usd on Hutchison Essar.Separately, Reliance Communications also approved the issuance of foreign currency convertible bonds in one or more tranches of up to 1 bln usd or equivalent, at a premium to the market price of the equity shares of the company.The company's shares closed at 407.25 rupees, down 3.7 pct from yesterday's close.newsdesk@afxnews.comaku/roCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Vodafone, Reliance eyeing Indian mobile operator Hutchison Essar 