Indian conglomerate Essar may start a legal battle against Vodafone, which is replacing Hutchison Telecom in the Indian mobile venture Hutch-Essar, on account of it being ignored in taking key business decisions, British media reported on Tuesday.
Quoting unnamed sources, The Times reported that Essar is concerned over Vodafone's move to forge ahead with plans like network sharing without consulting it first.
Essar, who have long claimed legal rights, including a right of refusal over Vodafone's bid, is understood to be considering taking legal action, the paper reported.
The Times report quoted unnamed sources close to the group as saying Essar was unhappy about the way Vodafone was treating the acquisition as a done deal when their position is yet to be resolved.
An Essar group spokesperson told PTI from Mumbai that "Essar is awaiting an official communication from Hutchison relating to Hutchison's proposed agreement to sell its stake to Vodafone as reported."
"On receiving the same, Essar will evaluate all its option in the coming weeks and will take necessary steps in the best interest of the company," he added.
The plan to share network with India's leading mobile player Bharti Airtel was central to Vodafone's strategy to maximise returns from Hutch-Essar, The Times report said.
Essar is yet to decide whether to sell out of the venture or accept Vodafone's offer of a partnership.
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