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Wednesday, February 7, 2007
MUMBAI: Hong Kong's Hutchison Telecom may sell its stake in India's Hutchison Essar Ltd. through an open auction with a minimum reserve price of around $14 billion, the Hindustan Times newspaper said.
The auction method would be similar to that used for the recent sale of Anglo-Dutch steel maker Corus, the newspaper said on Wednesday, quoting "highly placed" sources close to the deal.
"Hutchison Telecom will also fix a minimum reserve price so as to eliminate bidders who are not serious," it said.
Europe's most valuable telecoms company Vodafone Group Plc, India's Reliance Communications Ltd., Hutchison's local partner Essar and India's Hinduja group are pitted against each other to buy a 67 per cent stake in Hutchison Essar, valued as high as $20 billion.
Hutchison Essar is India's fourth largest mobile phone service provider and the paper said its enterprise value would be around $18-$20 billion including debt of $1 billion.
Hutchison Telecommunication International Ltd. was expected to hold an extraordinary general meeting (EGM) in the third week of February.
"After the EGM, the bids will be submitted and HTIL in consultation with the bidders will decide the rules of the game for its planned open auction," the paper said.
Source: Reuters
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