The race to acquire mobile operator Hutch-Essar is heating up. European major Vodafone, which controls 10 per cent stake in Bharti Airtel, has confirmed its interest to buy out Hutch-Essar.
Anil Ambani-led Reliance Communications has already bid for Hutch-Essar, India’s fourth-largest mobile operator. With Vodafone too jumping into the fray, Reliance Communications said it would now make its move only after the UK-based mobile phone giant made a formal bid.
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Reliance Communications approached the Hutchison Essar Ltd owners Ruias through merchant bankers to buy their 33 per cent stake. Nimesh Kampani of JM Morgan Stanley, who represents the Ruias, is believed to have had meetings with Ambani on the issue. Merchant banking sources said the Ruias were veering to the view of cashing out but a final decision would be taken only after the valuation was decided. Sources said Ambani had approached Morgan Stanley and Hutchison's advisor Goldman Sachs with a clear direction that he would pick up 100 per cent stake in the company and was not interested in negotiating separately with the Ruias later.
Meanwhile, Vodafone has mandated UBS as its advisor for the deal.
Image: Anil Ambani
Also read: A day after, Anil Ambani raring to go
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