Foreign cos want Datacom sans existing partners

NEW DELHI: Some foreign telcos are learnt to have set a pre-condition that both the warring partners of Datacom exit the company before they invest in it. Sources said about three foreign telcos have approached JV partners of Datacom���Dhoots of the Videocon group and Mahendra Nahata of Himachal Futuristic Communications (HFCL)���for a 100% buyout of the company.

The foreign telcos then want to bring in their own Indian partner who will hold a 26% stake in the telco. ET has learnt that foreign telcos did not want to pick up stake in company where both promoters are involved in a bitter corporate battle.

Sources also added that Datacom���s valuation has suffered because of the internal squabbles between the two partners which is now being pegged at $1.5 billion. Datacom was among the nine new players who were given telecom The company is likely to be the first player among the new entrants to launch mobile services as it is ahead of the other telcos in network deployment.

When contacted by ET, Videocon chairman V N Dhoot denied that he would exit the company. ���We have not plans to exit. We are staying on at Datacom. We have made investments in the company, will make more investments, roll out mobile services and run the company.��� Mr Dhoot however did not reply to a detailed email sent by ET on this issue
When contacted HFCL chairman Mahendra Nahata declined to comment.

Mr Nahata holds a 36% stake in Datacom. Last year, the Dhoots of the Videocon group had bought a 64% in Datacom from Mr Nahata. However a source close to HFCL who is involved in the developments in Datacom said: ���It is a fact that foreign telcos who are looking at Datacom want both partners to exit before they pick up stake in the company.

Talks are on with at least three foreign players who are willing to bring in their own Indian partners. These foreign players have an understanding of the India market and some already have partners here,��� this source added while refusing to name the international communication majors who were in talks with Datacom. Several foreign telcos such as AT&T, France Telecom, British Telecom, Cable & Wireless, Verizon amongst others operate in the long distance space in India with local partners.