Li, Asia's richest man and the chairman of Hutchison Whampoa, is famed for his market timing, havin

Li, Asia's richest man and the chairman of Hutchison Whampoa, is famed for his market timing, having sold mobile group Orange to Germany's Mannesmann during the telecoms boom in 1999 for a $15 billion profit. Vodafone said the deal would be neutral to earnings in the first year, excluding intangible amortisation. Including intangible amortisation, it would dilute earnings by 6 percent to 7 percent in the first year before turning positive in five years.

BRAND INTO INDIA The deal will give the British group control of an operation with 50 percent revenue growth, good margins, more than 24 million customers and a 16 percent market share, as well as the opportunity to bring its brand into India.

Vodafone could be forced to shell out another $5 billion if existing minority partner Essar decided to cash out, but Finance Director Andy Halford said the group had enough borrowing headroom and it would not affect the group's credit ratings.

Vodafone has generated some financial cushion in recent months, with disposals of minority stakes in Belgium and Switzerland helping it raise up to $6 billion.

In addition, the group announced it would sell a 5.6 percent stake in India's top mobile operator, Bharti Airtel, for $1.6 billion, and unveiled plans to share network infrastructure with Bharti to rein in costs. It bought a 10 percent stake in Bharti for $1.5 billion in 2005.

The group, which is barred by Indian law from owning more than 74 percent of a local telecoms operator, said it was keen on existing partner Essar staying on in the venture.

''Vodafone has invited us to be its partner in Hutchison Essar, an offer we are evaluating,'' Essar group Vice Chairman Ravi Ruia said in a statement.

The Essar group has in the past threatened to block any bid, claiming a right for first refusal for the Hutchison stake, but CEO Sarin said he did not think Vodafone's deal was at risk.

''They do not have the right of first refusal. It's our lawyers' view, our view, it is HTIL (Hutchison's) view,'' he said.

Asked what Vodafone would do if Essar also decided to sell out, he said: ''We really want to see that we can make sure that Essar can stay and see the future that we see in this company ... (But) we have a plan B.'' REUTERS DKS BST0736