Mittal, Essar eye stake in India's Prize-HPCL head

NEW DELHI: Steel magnate Lakshmi Mittal and Indian refiner Essar Oil are among those competing to buy a stake in Prize Petroleum, 50 percent owned by Hindustan Petroleum Corp, HPCL's chief said on Wednesday.

"Mittal, Larsen & Toubro, Jaiprakash Associates and Essar Oil are doing due diligence for buying stake of financial institutions in Prize Petroleum," HPCL chairman Arun Balakrishnan told Reuters on Wednesday.

ICICI Bank, India's second largest lender, owns 45 percent in Prize, while mortgage firm Housing Finance Development Corp has the remaining 5 percent, and Balakrishnan said they are not keen to invest further.

He said the sale should be completed within two months, but it would be up to ICICI to determine exactly when. Prize operates three small fields in western India and is considering a rights issue to fund its exploration expenses.