Vodafone Group Plc, the world's largest telecom operator, has raised $3.5 billion by offloading its stake in Swisscom Mobile, amid reports that the British giant could be eyeing Hong Kong-based Hutchison Telecom, which has a two-third stake in India's Hutch-Essar.
Vodafone, which already has 10 per cent stake worth about $2 billion in India's largest telecom firm Bharti, is understood to be in touch with corporate giant Essar, the Indian partner in Hutch-Essar.
However, there was no official confirmation to the talks between Essar and Vodafone, with spokespersons of the two firms saying they would not like to comment on speculation.
Incidentally, Essar Vice-Chairman Ravi Ruia, Essar Teleholdings CEO Vikas Saraf and some other top group officials are here. But it was not clear whether their visit was in connection with Hutch-Essar or for some other purpose.
Asked, if Vodafone Board was meeting in a day or so to discuss the company's exit from Bharti and move toward acquiring Hutchison Telecom International Ltd, a company spokesperson said: "We would never comment about these sort of issues under any circumstances."
To another query if it was interested in HTIL and joining Essar for the Indian JV Hutch-Essar, he said: "We have no comments to make regarding the speculations on this issue."
The spokesperson said the sale proceeds from the Swiss firm would be "used to reduce net indebtedness."
Hutch-Essar is the third-largest mobile phone company with around 27 million subscribers in India, the world's fastest-growing wireless market.
Speculations about Vodafone joining the race for acquiring HTIL, as a result of which it could control 67 per cent stake in Hutch-Essar, had taken many in the Indian industry by surprise. There has been an overall confusion about the joint venture, the fate of which could be decided only by Essar's decision to sell its equity or stay put.
Vodafone had acquired a 25 per cent stake in Swisscom Mobile in January 2001.
Vodafone CEO Arun Sarin had said on Tuesday while announcing the company's exit from the Swiss venture: "We do not see ourselves as the most appropriate holder of this minority stake in the longer-term and Swisscom is keen to increase its holding in Swisscom Mobile to drive through synergies in its fixed and mobile businesses.
"It therefore makes sense to sell our stake now for an attractive price."