The Hindu Business Line : Essar plan to stay invested in Hutch

(From right) Mr Arun Sarin, Chief Executive Officer, Vodafone; Mr Prashant Ruia, Director, Essar; and Mr Ravi Ruia, Vice-Chairman, in Mumbai on Thursday. — Paul Noronha

Advertisement

Mumbai Feb 15 The Ruias of Essar said on Thursday that they intend to remain invested in Hutchison Essar.

Mr Ravi Ruia, Vice-Chairman, said that the company had no intention of either exiting Hutch Essar or the telecom business. "We will be partnering with Vodafone and work together," he said.

Mr Ruia made the comment after a two-and-a-half hour meeting with Vodafone chief Mr Arun Sarin at the Ruias' residence at Walkeshwar.

The Ruias and Mr Sarin appeared warm towards each other, as they stepped out of their luncheon meeting and posed for photographs.

Mr Sarin said that he was "delighted" to partner with the Ruias. "I have a lot of respect for the Ruias and together we can take the company forward."

On when they expected to finalise the partnership arrangement, Mr Sarin said that they were moving towards it. "At the moment, we are trying to iron out certain issues between ourselves," he added.

"Essar is a founding shareholder of Hutchison Essar and the group sees telecom as a core part of its business portfolio for the long term," said a formal statement from the Essar group issued later in the day.

"It is Hutchison that is selling its shares; Essar has no intent to exit the company."

Vodafone has approached Essar to discuss a possible partnership with them.

"We will take a decision on future course of action in due course and in the best interests of the Essar Group," the release added.

Vodafone has just clinched a $11.1-billion deal to buy controlling stake in India's fourth largest mobile telephone company.

There had been speculation that the Essars may sell their holding to Vodafone, which had offered to buy it at the same rate it was paying for Hutchison Telecommunication's stake.

The Ruias were peeved by the British telecom giant's decision to share telecom infrastructure with Bharti Airtel without consulting them.

Mr Sarin had sought to smoothen the ruffled feelings of the Ruias by offering to send them roses on Valentine's Day on Wednesday.

"Yesterday was Valentine's Day and the day for roses. Today's the day for sweets," he said after today's meeting .

More Stories on : Telecommunications | Mergers & Acquisitions

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Essar plan to stay invested in Hutch

Give farmers a separate bank

The tale of India's own very special Budget

CXOs prepare to wear new hats...

Inflation rises to 6.73%

New initiative launched in infrastructure financing

Fund managers here seek overseas advice

Petrol, diesel to cost less

Exporters stop booking arabica contracts

ICICI Bank's new home loans may be costlier

Sensex zooms 345 points

Vihaan offers low cost network for rural areas