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Home  » Business » Bharti to allow Vodafone exit through market route

Bharti to allow Vodafone exit through market route

Source: PTI
January 24, 2007 19:28 IST
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Bharti Airtel chief Sunil Mittal on Wednesday gave a go-ahead to British telecom giant Vodafone to sell its equity from his company in the market in case the UK entity acquired Indian mobile player Hutch-Essar.

"They can go to market and sell. It is good for the company as well since more of the float gets created," Mittal told reporters on the sidelines of the World Economic Forum meeting which began in Davos on Wednesday.

Vodafone is a front-runner for acquiring Hutchison Telecom's majority stake in the Indian venture Hutch-Essar.

Indian partner Essar, Reliance Communications and Hindujas are also interested in picking up the 67 per cent stake.

The British firm has about 9.9 per cent in India's largest mobile operator. The two companies have a non-compete clause in the agreement, and Vodafone has to seek Bharti's permission before buying a stake in a rival company.

Mittal, who is among the four co-chairs of WEF meeting, said his talks for disengagement of Vodafone from Bharti would begin only after something comes out of Essar-Hutch deal.

The CII Vice-President said even if Vodafone continues to hold stake in Bharti, the latter would have no problem.

"There would be no conflict of interest since Vodafone would not be in the management," he said.

However, since Vodafone has big aspirations for the growing Indian market, it is likely to exit from Bharti if it is able to strike the Hutch deal.

Coinciding with HTIL's scheduled board meeting on Monday, there is speculation Vodafone, which has finished due diligence of Hutch-Essar, may make a bid next week.

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