2/12/2007

hutch takes the lap of Vodafone,woos Essar


Of the four contestants vying to buy the Hutchison Essar,the British telecom giant Vodafone has finally emerged as winner above the Anil Ambani's Relicance communiations and the Hinduja's.On sunday,vodafone,the world's largest player in GSM technologies,acquired Hutchison telecommunications International Ltd 67% stake in Hutchison Essar with a bid of 19$ billion.Official has yet to be made about the acquisition.Vodafone has already extended an olive branch to Essar,which hold the remaining 33% stake in hutch essar,which was also among the bidders for HTIL stake.It would like Essar to continue as its local partner.Essar hasn't yet decided whether to accept the proposal or not.Since existing regulations of the TRAI ,vodafone will have to find another partner.Such a investor would hve to invest 5$billion in the venture to acquire 26% stake mandated ,without getting any manaement control in return.

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