Vodafone has right to walk away from India deal: FT

London, Feb 14: Vodafone Group Plc has reserved the right to abandon its planned .1 billion purchase of a controlling stake in mobile operator Hutchison Essar if litigation aimed at derailing the deal is launched, the Financial Times reported.

A document filed with regulators by Hong Kong's Hutchison Telecom -- which has agreed to sell its majority stake in Hutchison Essar to Vodafone -- showed that the British mobile firm had sought to protect itself against such a risk, according to the FT's Web site on Wednesday.

It said the document indicated that legal action could prompt the delay or termination of the deal.

''The (sale) agreement provides for certain termination rights arising as a result of circumstances tied to the existence of a (court injunction),'' the FT cited the document -- filed with Hong Kong regulators -- as saying.

If things go smoothly, however, the deal could be completed on April 2, the document said, according to the FT.

A comment was not immediately available from Vodafone.

Vodafone Chief Executive Arun Sarin told Reuters on Tuesday his firm wanted to keep the Essar group, an Indian conglomerate that owns a third of Hutchison Essar, as a partner and foresaw no problems facing the deal.

Reuters

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