The Hindu Business Line : Hutch bidding goes to the wire

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New Delhi Feb. 9 The battle for acquiring Hutchison Essar continued till late on Friday night, with Vodafone, Reliance Communications and the Hindujas putting in their bids at the last moment, and all the prospective bidders keeping their cards close to the chest till the last hour.

Hutchison International Telecom Ltd (HTIL) had asked all interested companies to put in their bids by midnight (Hong Kong local time).

The bids were being sent via e-mail, according to one of the bidders.

The Ruias-promoted Essar, which owns 33 per cent stake in Hutchison Essar, is also interested in increasing its equity but it could put in its bid later since it has the right of first refusal, said Essar sources.

Russia's Altimo may also emerge as a late entrant to the race.

Sources close to the development, however, said that the sale would not close very quickly despite the bids coming in tonight.

The HTIL board may meet on Sunday to take a view on the bids.

While Hutch, which holds 67 per cent stake in Hutchison Essar, had indicated that any bids below $14 billion would not make a case for selling its Indian stake, bidders such as Vodafone and Reliance said that they would not pay a high price.

Analysts, however, said that the more prolonged the battle, the more costly the buy would become. Meanwhile, Mr Analjit Singh, Chairman of the Max Group, told Business Line that he was open to partnering with Vodafone as its Indian partner if it wins the bid. However, he reiterated that Max's focus would continue to be on healthcare and insurance.

While India's telecom industry has experienced heightened merger and acquisition activities over the last 12-18 months, credit rating agency Fitch has noted that none of the transactions remotely compares with the proposed sale of Hutch, either in terms of acquisition values, strategic significance or implications for the industry.

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