SL backs Vodafone bid for Hutch Essar
Standard Life is believed to have indicated it could launch an offer which would value the Hutch at £9.17bn.
By Agencies |
LONDON: Vodafone shareholder Standard Life Investments has backed the mobile firm's plan to buy a controlling stake in Indian operator Hutchison Essar.
The approval of the city-based investor, which is known for being one of Vodafone's most vocal shareholders, comes as Indian telecommunications giant Reliance joined the race for Hutchison - alongside Essar, which already has a 33 per cent stake in the company and has offered at least $11 billion.
Wesley McCoy, investment director of UK equities for Standard Life Investments, said: "Vodafone have recently expressed an appetite to leverage their brand in fast-growing markets.
"In order to ease worries about them over-paying to satisfy this appetite, the company has committed publicly to strict investment hurdles which should ensure they do not over pay for assets."
Standard Life has a 1.7 per cent stake in Vodafone, which is believed to have indicated it could launch an offer which would value the Indian group at around £9.17bn.
Standard Life was one of three major shareholders to openly oppose the re-election of Vodafone chief Arun Sarin at last summer's annual meeting.
Mr McCoy added: "The last major transaction in an emerging market was Turkey, where they are now trading ahead of initial expectations, which bodes well for future moves."
The approval of the city-based investor, which is known for being one of Vodafone's most vocal shareholders, comes as Indian telecommunications giant Reliance joined the race for Hutchison - alongside Essar, which already has a 33 per cent stake in the company and has offered at least $11 billion.
Wesley McCoy, investment director of UK equities for Standard Life Investments, said: "Vodafone have recently expressed an appetite to leverage their brand in fast-growing markets.
"In order to ease worries about them over-paying to satisfy this appetite, the company has committed publicly to strict investment hurdles which should ensure they do not over pay for assets."
Standard Life has a 1.7 per cent stake in Vodafone, which is believed to have indicated it could launch an offer which would value the Indian group at around £9.17bn.
Standard Life was one of three major shareholders to openly oppose the re-election of Vodafone chief Arun Sarin at last summer's annual meeting.
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Mr McCoy added: "The last major transaction in an emerging market was Turkey, where they are now trading ahead of initial expectations, which bodes well for future moves."
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