Vodafone, Essar in put option talks for 33 pct Hutchison Essar stake - report |
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Tue, 27 Feb 2007 08:04
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MUMBAI (AFX) - Vodafone Group PLC and Essar are in talks over a possible put option for the latter to sell off its 33 pct stake in Hutchison Essar to Vodafone, the Economic Times reported, citing sources familiar with the situation.The newspaper said Essar is asking for a premium over the price paid to Hutchison International while Vodafone is insisting that it pay the same price.The sources said the talks between the parties are expected to continue this week.Other contentious issues that need to be resolved include Ruia Group, Essar's promoters, who are demanding joint rights to manage Hutchison Essar and the right of first refusal for any stake sale in the future.The newspaper also said Vodafone has sought India's Foreign Investment Promotion Board approval for the 5.7 bln stg takeover of Hutchison Essar.While Vodafone does not need this clearance for buying out Hutchison International's 52 pct stake, Indian law stipulates that the UK firm needs to obtain approval for its exit from Bharti, by submitting a 'no objection' certificate from the latter.The paper cited sources as saying the no objection certificate specifies Sept 30 2007 as the cut-off date for the completion of the transaction, but said it included a clause that it may be extended 'in good faith' until end-December.newsdesk@afxnews.comran/ra/slmCOPYRIGHTCopyright AFX News Limited 2007. 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 'has won' bid for Hutchison Essar control - report 