Vodafone to place its bids for Hutch-Essar in Feb

New Delhi, Jan 10: Vodafone Chief Arun Sarin today said his company will place their bids mid-February to acquire stakes in Hutch-Essar.

Mr Sarin who would be meeting Communications and IT Minister Thiru Dayanidhi Maran later in the day, told the media on his arrival that his company was looking to buy whatever stake is available in Hutch-Essar and put in a bid in the next few weeks.

Hutch-Essar, the country's fourth largest mobile player, has 67 per cent owned by Hong Kong-based Hutchison Telecommunications International Ltd and 33 per cent by Indian conglomerate Essar.

Meanwhile, Mr Maran said at an IT workshop here that the government wanted good companies to enter the country.

''We want good players to come to India. Whatever they do (thereafter) is their business,'' Mr Maran said after his arrival from Chennai here.

The Vodafone chief began his day by meeting Bharti Airtel Chairman Sunil Mittal, in which Vodafone holds 9.9 per cent, followed by a meeting with Commerce and Industry Minister Kamal Nath.

Without mentioning UK telecom giant Vodafone's bid for Hutch-Essar, Mr Maran said, ''The recent development (of foreign players interest in acquiring Indian firms) shows the strength of India's telecom sector and proves that the sector is growing.'' Mr Maran said ''It also proves that we made the right decision in increasing FDI cap to 74 per cent.'' The FDI policy for telecom sector was 'a clear signal' to the foreign players about the growth and opportunities in the Indian telecom market.

Commerce Minister Kamal Nath, asked the UK telecom giant to follow best commercial practises in its bid to acquire Hutch-Essar.

''It (a deal) should be done in a transparent manner in accordance with best commercial practices and in the best interest of all stakeholders,'' the Minister told the Vodafone Chief.

Bankers estimate the worth of the bid as much as 18 billion dollars.

Vodafone faces competing bids from Reliance Communications Ltd, and Hinduja Group to acquire a 67 per cent stake from Hong Kong billionaire Li Ka- shing.

Hutchison Essar is adding one million customers a month in a country where only 13 per cent of the population own a cell phone.

Vodafone, based in Newbury, England, is willing to partner with India's Essar Group, owner of the remaining 33 per cent stake, Sarin said. We are open to all options,'' he said.

Anil Ambani owned Reliance Communications, is holding a board meeting during the day to consider raising funds overseas.

UNI