After Vodafone's Sarin, Anil Ambani lobbies for Hutch-Essar
Thursday, 11 January 2007, 18:30 IST
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New Delhi: A day after Vodafone chief executive Arun Sarin met ministers and officials to discuss his company's bid to pick up stake in Hutch-Essar, Reliance Communications chairman Anil Ambani also arrived to personally lobby for the deal, telecom industry sources said. On his hush-hush visit Ambani is understood to have met Finance Minister P. Chidambaram and Communications Minister Dayanidhi Maran, but officials at both the ministries declined to comment on the deliberations. Ambani's visit comes against the backdrop of the authorisation given to him by his company's board of directors to "take all necessary steps" for a possible takeover of Hutch-Essar - the second-largest mobile telecom operator in India. For Reliance Communications, a successful acquisition of this deal would give it an entry make into the GSM telephony market. The company currently has a nationwide presence in the CDMA telecommunications market. Vodafone's Indian-born chief executive had told reporters Wednesday that he is hopeful of presenting a formal bid to Hutch-Essar by early next month. Vodafone currently has 10 percent equity in Hutch-Essar's competitor Bharti Televentures. The global mobile phone giant has also hired accounting firm Ernst and Young and the New Delhi-based law firm Trilegal to help them in the due diligence process, industry sources said. "We are a partnership kind of people. We are open to everything," Sarin told reporters Thursday when asked if he was also ready to partner with Reliance. He has also said that he was open to partnering with the Ruias of the Essar group who have a 33 percent stake in Hutch-Essar. The Hong Kong-based business tycoon Li Ka-Shing's Hutchison Whampoa has the remaining 67 percent stake. Shashi Ruia of the Essar Group had also met Chidambaram on Wednesday.
Source: IANS
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