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Home  » Business » Essar begins due diligence; RCom to follow tomorrow

Essar begins due diligence; RCom to follow tomorrow

Source: PTI
January 10, 2007 17:54 IST
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Days after Vodafone started studying the books of Hutchison Essar, rival suitor Essar Group's bankers on Wednesday started 'confirmatory due diligence', while another potential bidder Reliance Communications would start the process on Thursday.

Anil Ambani Group company would start examining the books of India's fourth-largest mobile player on Wednesday along with its advisor KPMG and investment bankers JP Morgan, ABN Amro and HSBC, sources close to the developments said.

Meanwhile, bankers associated with Ruias-promoted Essar, which has 33 per cent stake in Hutch Essar, also started their due diligence on Wednesday for acquisition of its Hong Kong-based foreign partner Hutchison Telecom's 67 per cent, sources said.

Essar has appointed five bankers - Citibank, Morgan Stanley, Standard Chartered, Merill Lynch and Lehman Brothers - for the deal. The company has already received funding pledges worth up to $25 billion from these bankers, merchant banking sources said.

Essar chairman Shashi Ruia had announced on Monday the group's intention in buying out Hutchison Telecom's stake from the joint venture.
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