News APP

NewsApp (Free)

Read news as it happens
Download NewsApp
Home  » Business » Four suitors bid for 67% stake in Hutch

Four suitors bid for 67% stake in Hutch

By BS Reporters in New Delhi/Mumbai
February 10, 2007 12:40 IST
Get Rediff News in your Inbox:

With Hutchison Telecommunication International Ltd (HTIL) formally asking companies to submit their price bids for its 67 per cent stake in Hutchison-Essar, India's fourth-largest mobile service provider, by midnight Hong Kong time, the Ruias, Anil Dhirubhai Ambani group, Hindujas and Vodafone are all believed to have put in their bids.

The Ruias, the 33 per cent partner in Hutch-Essar, have bid with the condition that they reserve the right of first refusal and should be given the opportunity to match the highest bid, in case such a situation arises.

Merchant banking sources say the banker supporting one of the bids has valued HTIL's 67 per cent stake at $11 billion. Merchant bankers, however, expect the valuation of the company at $16-20 billion.

Meanwhile, television channels reported that the board of HTIL would meet on Sunday to discuss the bids.

Through the day, reports had surfaced of Altimo, the telecom arm of Russian conglomerate Alfa group, emerging as the "dark horse" bidder.

Altimo chief financial officer Teijo Pankko had told Reuters a few weeks ago, "Hutchison Essar is a natural interest for us. If there is a structure of transaction where we can, let's say, have a role and we are welcome, we'll do it."

However, merchant banking sources confirmed that Altimo, which has major stakes in mobile and fixed-line companies in Russia, the Ukraine and Turkey, did not put in a bid.

Get Rediff News in your Inbox:
BS Reporters in New Delhi/Mumbai
Source: source
 

Moneywiz Live!