odafone mulls $13.5 bn offer
The board of Britain’s Vodafone Group Plc is set to meet on Thursday to mull a proposed USD13.5 billion-plus offer for Hutchison Essar, the Financial Times reported.
Such a move would probably trigger a bidding war with the second biggest mobile services firm in India, Reliance Communications Ltd, which is controlled by Anil Ambani group, Thursday’s edition of the newspaper said.
A Vodafone spokesman declined to comment on the story, which came after Indian newspapers reported on Wednesday the firm was exploring options for a bid for Hutchison Essar to expand its presence in the world’s fastest growing cellular services market.
This could include selling its stake in top mobile services firm Bharti Airtel Ltd, the Economic Times said.
Hutchison Essar is 67 per cent-owned by Hong Kong tycoon Li Ka-shing’s Hutchison Telecommunications International.
India’s Essar group, which holds the remainder, has first right of refusal if Hutchison decides to exit.
The FT said Vodafone executives were to decide whether to pursue what would be the largest offer to buy an Indian firm.
They planned to offer a bid to Canning Fok, managing director of Hutchison Whampoa, and Ravi Ruia, vice-chairman of Essar, on Friday, in London on Friday the newspaper said.
Such a development, however, would likely prompt a counter offer from Reliance, according to the FT, which cited an unnamed banker familiar with the situation.
A person close to Reliance Communications, which the FT said had joined forces with private equity houses including Blackstone to consider an offer for Hutchison’s stake, was quoted as saying that the company was monitoring developments but had not yet decided to make a formal bid.
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