Vodafone confirms considering stake in Hutch India

London, Dec 22 (UNI) Vodafone has confirmed that it is considering a bid for a majority stake in Hutchison Whampoa's Indian mobile phone business which is set to face competition from other potential suitors including Reliance Communications.

The mobile phone giant is widely expected to offer as much as 13.5 billion dollars (6.9 billion pounds) for Hutchison Essar.

However the company also cautioned the deal may not materialise.

Vodafone's shares fell one per cent in early London trading amid concerns that it would have to overpay to acquire the asset.

Hong-Kong based Hutchison Telecommunications today revealed that many parties had contacted it about acquiring its 67 per cent stake in Hutchison Essar - India's fourth-largest mobile phone operator.

Vodafone, which already owns 10 per cent of Bharti Airtel, believes the mobile market in India has great potential, and is keen to make a greater presence in the world's fastest growing telecom market.

The company in a statement said it was considering whether the deal met its criteria, both in terms of how much it would have to pay and its strategic implications.

It said, ''Vodafone continues to believe the mobile market in India has great potential and is therefore considering the acquisition of a controlling interest in Hutchison Essar.'' ''Such a consideration would be consistent with its stated strategy of seeking selective acquisition opportunities in developing markets,'' it added.

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