Vodafone may sell its Bharti stake if it swings Hutchison Essar deal - report |
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Tue, 16 Jan 2007 05:01
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BOMBAY (XFN-ASIA) - Vodafone Group PLC and Bharti Airtel are inching towards a deal whereby the UK company will sell its 9.9 pct stake in the Indian company to investors of Bharti's choice if Vodafone acquires a controlling stake in Hutchison Essar Ltd (HEL), the Economic Times reported, without citing sources.Vodafone's stake in Bharti is currently valued at 2.5-2.7 bln usd, it said.A senior Bharti official, however, denied such a development, the newspaper said.Under current regulations, Vodafone can continue to have 9.9 pct stake in Bharti and also hold controlling stake in Hutchison Essar. However, before any of this can happen, Vodafone will first have to get Bharti's promoter Sunil Mittal to waive off a non-compete agreement.The clause prohibits Vodafone from competing in the same market for one year after selling its shares in Bharti.Meanwhile, Singapore Telecommunications Ltd, which currently holds 30.49 pct stake in Bharti, is open to increasing its stake in Bharti if Vodafone were to sell its stake, the report said.rc/
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Vodafone outlines its strengths for potential Indian acquisition - report 