Date:11/01/2007 URL: http://www.thehindu.com/2007/01/11/stories/2007011108181700.htm

Business

Vodafone chief meets ministers

Arun Sarin

NEW DELHI: U.K. telecom giant Vodafone, a front-runner for Hutchison Essar Ltd. (HEL), on Wednesday sought support from Indian polity, saying it was important to seeks views of regulatory and political officials about the market in India.

"As a large investor in India, Vodafone is committed to bringing all economic and social benefits of mobile telephony to citizens both in urban and rural areas,'' a Vodafone spokesperson said at the end of company CEO Arun Sarin's hectic parleys with senior Cabinet ministers.

In this context, it is really important to understand what senior political and regulatory officials feel about the market in India, company officials said, pointing out that Vodafone had considerable experience of operating in India and good track record with its Indian partners.

Vodafone, a 9.9 per cent equity holder in market leader Bharti Airtel, is seeking to buy a controlling stake in HEL, where Hong Kong-based Hutchison Telecom has 67 per cent stake, and is not averse to partnering Essar, which has 33 per cent stake in the venture.

The company feels that India is an attractive mobile market with a low level of penetration and excellent growth opportunities — a statement that company CEO Arun Sarin reiterated after meeting key government officials here. Mr. Sarin, an IIT Kharagpur alumnus, held meetings with Finance Minister P. Chidambaram, Commerce Minister Kamal Nath and Communications Minister Dayanidhi Maran to discuss regulatory and other issues. — PTI

PTI reports from Mumbai

Essar begins due diligence

Days after Vodafone started studying the books of HEL, rival suitor Essar Group's bankers on Wednesday started `confirmatory due diligence,' while another potential bidder Reliance Communications would start the process on Thursday.

Anil Ambani Group company would start examining the books of India's fourth-largest mobile player on Thursday along with its advisor KPMG and investment bankers, sources close to the developments said.

Meanwhile, bankers associated with Ruias-promoted Essar, which has 33 per cent stake in HEL, also started their due diligence for acquisition of its foreign partner Hutchison Telecom's 67 per cent, sources said.