The Asian Age

Vodafone bid likely in Feb. 

January 11, 2007

New Delhi: Vodafone CEO Arun Sarin said on Wednesday that Vodafone is open to a partnership with Essar. Vodafone is likely to make a formal bid for the Hong Kong-based Hutchison Whampoa’s controlling stake in Hutch Essar in February.

Mr Arun Sarin, who arrived in Delhi in the early hours of Wednesday morning, said that Vodafone will make a formal bid in a few weeks adding, it would be later than the end of January. Mr Sarin declined to comment on any offer price.

He said that Vodafone has already started examining the books of Hutch-Essar and would finish the exercise within a couple of weeks. "Due diligence of Hutchison Essar Limited (HEL) has started. It will be completed in a couple of weeks," said Mr Sarin.

Mr Sarin added India is a growing market and it fits well in Vodafone’s plans. Mr Sarin also claimed that FDI regulations in the telecom sector are clear to the company. Mr Sarin who met commerce minister Kamal Nath was told that India welcomes investment and the deal should be done in a transparent manner in accordance with best commercial practices.

"I told him that India is not used to hostile arrangements and it would be best if it is done amicably as per the legal arrangements," said Mr Nath.

Excerpts

*****