India's Essar bracing for big fight with Vodafone over Hutchison Essar - report |
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Fri, 12 Jan 2007 04:59
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HONG KONG (XFN-ASIA) - India's Essar group will deem any move by Vodafone Group PLC to raise its bid for Hutchison Essar Ltd as hostile and will try to match the bid again or fight in court, the Wall Street Journal reported, citing a person close to the matter.It said Essar could also try to team up with another bidder, such as Reliance Communications Ltd, in the battle with Vodafone.Vodafone has put forward an offer of 16.5 bln usd during an initial round of non-binding bids for the Indian firm, and Essar plans to use what it considers its contractual rights to match Vodafone's bid, the report said.Vodafone's was the highest offer in the initial round but the UK firm has been considering making a higher bid, it said.Hutchison Essar is 67 pct-owned by Hong Kong's Hutchison Telecommunications International Ltd, while the Essar group holds the rest.Vodafone is conducting a due-diligence on Hutchson Essar and its CEO Arun Sarin has been in India this week meeting with government officials to discuss the potential deal.If Vodafone prevails Essar could resort to using powers it has in the Hutchison Essar shareholders agreement to try to block any changes Vodafone tries to make, including management changes, rebranding the business to use the Vodafone name, or have special dividends paid out, the Journal cited the source as saying.Sarin has said that a formal bid by Vodafone is still some weeks away.rc/
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Vodafone, Reliance eyeing Indian mobile operator Hutchison Essar 