ET has reported that Anil Ambani is in talks with Kohlberg Kravis Roberts & Co (KKR) to make a joint bid for Hutchison Essar. Details unavailable. HTIL has rejeced a $13.5 billion joint bid by Texas Pacific and Maxis Telecom. Wait a minute, $13.5 Billion + Debt ? That’s insane valuations for Hutch Essar.
One of our readers commented that times have changed and Ambani might just opt to BUY rather than BUILD. Recall what the world’s richest man Bill Gates said, “If the folks next in line to you are deal makers, then you end up buying lot of companies. If the folks next in line to you are developers, you end up developing millions of lines of code”. Long term investors like Gates, Buffet etc always look to BUY businesses at fair valuations or at discounts but never pay an insane premium.
Tags: Mobile India, Telecom India, Hutch, Private Equity
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