Battle for Hutch: Bids in, deal weeks away
Vodafone, Essar, RCOM put in bids ranging between $16-17 billion for 100% of the company.
By TNN |
MUMBAI/NEW DELHI: It could be the beginning of the end of the long drawn-out battle for Hutchison Essar (HEL). British giant Vodafone, Essar and Reliance Communications (RCOM) on Friday submitted bids for buying the JV between the Ruias of Essar Group and Hutchison Telecommunications International (HTIL). According to agency reports, Hindujas have also submitted their bid.
The bids are said to be in the range of $16-17 billion for 100% of the company, and the HTIL board is likely to meet in Hong Kong on Sunday to discuss the bids.
Meanwhile, media reports said Russian telco Altimo has joined the race for Hutchison Essar and is also believed to have submitted its bid on Friday. Altimo has appointed Rothschild as advisor and Nomura of Japan as its financier, said sources. However, this could not be confirmed.
The Essar Group also reserves the right to exercise its right of first refusal (RoFR) by trying to match the highest bid. Sources close to the deal said, ���Essar has put in its bid and reserved all its right under the RoFR.��� Sources added Essar has fully tied up funds to go well above the initial offers, which were received at around $16 billion. Hutchison had said the bids must be submitted by Friday and if Essar did not submit its bid, it will not be considered a bidder. Some experts believe that by putting in its bid, Essar may have jeopardised its chances of exercising the RoFR.
If the Ruias submit their bid, they will lose the RoFR. If they want to exercise it, they will have to refrain from bidding," sources said.
The bids are said to be in the range of $16-17 billion for 100% of the company, and the HTIL board is likely to meet in Hong Kong on Sunday to discuss the bids.
Meanwhile, media reports said Russian telco Altimo has joined the race for Hutchison Essar and is also believed to have submitted its bid on Friday. Altimo has appointed Rothschild as advisor and Nomura of Japan as its financier, said sources. However, this could not be confirmed.
The Essar Group also reserves the right to exercise its right of first refusal (RoFR) by trying to match the highest bid. Sources close to the deal said, ���Essar has put in its bid and reserved all its right under the RoFR.��� Sources added Essar has fully tied up funds to go well above the initial offers, which were received at around $16 billion. Hutchison had said the bids must be submitted by Friday and if Essar did not submit its bid, it will not be considered a bidder. Some experts believe that by putting in its bid, Essar may have jeopardised its chances of exercising the RoFR.
If the Ruias submit their bid, they will lose the RoFR. If they want to exercise it, they will have to refrain from bidding," sources said.
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