Almost echoing the views of Vodafone, Max India chairman and an equity holder in Hutchison Essar, Analjit Singh today said an alliance between Essar and the British telecom giant will be the best option.
"My position is very clear. I want Essar and Vodafone to come together," Singh said.
Singh, who has 8.75 per cent equity, said Vodafone-Essar combine would be in the best interest of consumers of HEL.
"For the deal to happen, the path of least resistance is seen to be if somehow Essar and Vodafone work together as it would be best for the country, for the customers. That would be most expedient," he said.
Singh's statement comes a day after Vodafone CEO's Arun Sarin's comments that Essar, which has 33 per cent stake in the venture, was the 'natural partner'.
". . . (in) any other combination you won't get the best of both the worlds," Singh said.
He, however, cautioned that legalities should not hold back the deal, possibly the biggest in India. Other than this, Singh foresees no other problems, but preferred not to divulge his options.
Singh said he expected the transaction for Hutch Essar Ltd would happen, unless it gets stuck over legal issues. If Vodafone partners Essar it could also bring more investments from the world's largest mobile operator into the country, he added.
Singh's comment assume significance as while Vodafone can acquire Hutchison Telecom's direct 52 per cent equity, it cannot directly acquire the remaining 15 per cent, which is owned by the Max India chief and Hutch Essar managing director Asim Ghosh.
Essar Global's 22 per cent stake along with HTIL's stake, takes the foreign equity in the company to 74 per cent, the maximum permissible FDI in a telecom company.
Singh was the original owner of Hutch Essar but his company Max Telecom later exited the telecom business. He returned to the telecom scene in March 2006 as part of the re-organisation following the exit of Kotak Mahindra.
More from rediff