Vodafone could back out of India deal - report |
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Wed, 14 Feb 2007 08:04
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LONDON (AFX) - Vodafone is reserving the right to walk away from its planned purchase of a controlling stake in Hutchison Essar, India's fourth largest mobile operator, if litigation seeking to thwart the deal is launched, reports the UK's Financial Times.According to the paper, a document filed with regulators by Hutchison Telecommunications International Ltd, the Hong Kong listed company that has agreed to sell its stake in Hutchison Essar to Vodafone, reveals that the UK mobile group has sought to protect itself against the risk of protracted litigation.The document summarises the sale agreement between HTIL and Vodafone, and it reveals how Vodafone would delay completion of the deal, or even abandon it, if legal action was launched, says the FT report.Vodafone announced on Sunday that it was buying companies that control a 67 pct stake, for a total 5.7 bln stg, in Hutchison Essar from HTIL.When approached by the FT last night Vodafone declined to comment.However, the paper claims that people familiar with the matter highlighted how Essar, the Indian conglomerate that owns 33 pct of Hutchison Essar, has been threatening legal action to enforce what it claims is a right of first refusal.According to the FT, Essar has repeatedly said it is entitled to the opportunity to buy the stake in Hutchison Essar held by HTIL.rhys.jones@afxnews.comrj/nesCOPYRIGHTCopyright 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 may share network infrastructure if wins Hutchison Essar bid - report 