The Hindu Business Line : Hutch buy: Cos told to submit bids today

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New Delhi Feb. 8 The battle for acquiring Hutchison Essar has reached a climax with Hong Kong-based Hutchison Telecommunication International Ltd (HTIL) asking all interested companies to put in their bids on Friday.

At least three companies are certain to put in their bids including Vodafone, Reliance Communications and the Hindujas. Maxis, Essar and Orascom have also expressed their interest in acquiring Hutchison's India stake though it is not clear whether they would participate in the bidding.

One of the prospective bidders confirmed that it has received a communication from Hutchison on Wednesday evening asking it to put in the bid on Friday. HTIL is expected to carry out an auction type open bidding process where interested firms can increase their respective bid amounts. Neither Hutch nor any of the other bidders confirmed that the bids would take place on Friday.

HTIL holds 67 per cent stake in Hutchisson Essar of which 10 per cent is held by Orascom and 12 per cent by Max Group Chairman Mr Analjit Singh and Managing Director of Hutchison Essar Mr Asim Ghosh.

The company has already said that it will not accept any bids that are lower than $14 billion even as companies such as Vodafone and Hindujas said that they would not go overboard with their bids.

Analysts said that any bid over $18 billion could be an expensive proposition. Apart from the value, it will also be interesting to see how the Ruias, which owns 33 per cent stake in the cellular company, play out their controlling stake.

Both Vodafone and Hindujas have said that they are open to the idea of partnering with Essar. Mr Analjit Singh could also remain as one of the Indian partners in case a foreign company wins the bid.

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