Hutchison Telecom International, which recently agreed to sell its India assets to Vodafone, on Thursday said its local partner Essar did not have the right to match the British firm's bid, but the Ruias-led company contested the claim.
"Our management has said that Essar does not have the Right of First Refusal in Hutchison Essar Ltd," an HTIL spokesperson told PTI from Hong Kong.
This would restrict Essar to match Vodafone's bid for HTIL's 67 per cent stake in HEL for $11.08 billion based on the enterprise value of $18.8 billion.
When contacted, an Essar spokesperson said: "Essar's position on this matter has not changed."
The Ruias-promoted group had earlier said that they enjoy the ROFR, which gives them the powers to match the highest bid for HTIL's stake in India's fourth-largest mobile player.
Asked whether HTIL gave Essar adequate opportunity to buy their assets in India, the Hutchison official said: "The bidding process was transparent and every participant had a chance to bid."
The dispute over ROFR between HTIL and Essar resurfaced after the Indian company sought joint management with Vodafone and a higher shareholding in Hutch-Essar.
At present, Essar holds 33 per cent stake in the joint venture, while Vodafone would control 67 per cent stake once HTIL's shareholders approve the proposal.
During the bidding war which lasted more than two months, Essar had said it was interested in acquiring HTIL's stake and claimed it had the ROFR.
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