Vodafone, Reliance eyeing Indian mobile operator Hutchison Essar |
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Published
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Thu, 21 Dec 2006 19:40
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LONDON: British mobile phone group Vodafone is reported to be considering bidding for Hutchison Essar, the Hutchison group-Essar group joint venture mobile phone business in India.
According to media reports in the U.K., Vodafone is offering $13.5 billion for the Indian venture, which is the country's fourth largest mobile operator.
Another bidder in the field in India's No 2 operator Reliance Communications, which is said to be aligning with private equity group Blackstone.
Hutchison Essar has some 18 million customers and a 16 per cent market share. It is 67 percent-owned by Hutchison Telecommunications International and the rest by Essar group.
Vodafone already holds a 10 per stake in another Indian operator Bharti Airtel Ltd. Its board is expected to meet Thursday to discuss whether it can hike the offer. The company, however, refused to comment on the reports.
Vodafone's shares declined by 3 pence, or 2 per cent, to 143 pence.
According to reports in India, there are other bidders for the company like Egypt's Orascom and Malaysia's Maxis Communications
Meanwhile, sources in India said Reliance Communications and Blackstone have approached banks, including Citigroup, for $15 billion financing to bid for the company.
India has nearly 136.22 million mobile phone users.
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