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Home  » Business » Hutch-Essar battle intensifies

Hutch-Essar battle intensifies

By Surajeet Das Gupta in New Delhi
March 02, 2007 12:07 IST
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Hutchison Telecom International Limited, which recently sold its 67 per cent control in mobile service provider Hutchison Essar to Vodafone, has filed a caveat in the Bombay high court requesting that it be made a party to any suit filed by the Ruias, the 33 per cent partners, against the shareholders' agreement.

The move comes on the heels of HTIL's open rejection of the Ruia claim of having a right of first refusal under the shareholders' agreement.

They claim the Hong Kong-based company has to give them the opportunity to match the highest offer in the event of a stake sale. The Ruias -- who have decided not to sell their stake -- have been looking at legal options to challenge the HTIL claim. An HTIL spokesperson in Hong Kong declined to comment.

HTIL is selling its entire stake in the joint venture to Vodafone, the world's largest telecom company, for an enterprise value of $18.8 billion. The company decided to sell its stake to Vodafone a few weeks ago after evaluating the four bidders, which included their partners the Ruias, Reliance Communications and the Hindujas.

The race for Hutch-Essar

Agencies add: HTIL's shareholders will on March 9 vote on Vodafone's offer to buy out the Hong Kong company's 67 per cent stake for $11.1 billion. HTIL has been maintaining that Essar does not have ROFR in the event of sale to Vodafone, which is also of the same view.

However, Essar thinks otherwise and is believed to have raised the issue when Vodafone CEO Arun Sarin was in India last month.

Sarin had met the Ruias, the promoters of Essar, and the two started negotiations, including on shareholding agreement.

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Surajeet Das Gupta in New Delhi
Source: source
 

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