Its official now, one of my trusted sources working for a brokerage firm in Mumbai called a while ago to inform that, HTIL will divest its 67% stake in Hutch Essar by an auction. HTIL has set a reserve price of $14 Billion to discourage non-serious bidders – Hindujas / Maxis ? Read what has happened before in the Hucth Essar corporate battle.
He further added that the auction is likely to be an open bidding process juts like the Corus Steel auction. Macquarie Research in its report on Reliance Communications Ltd published last month pegged Hutsh Essar’s 100% stake @ $20 Billion. HTIL will call for a shareholder metting later this month to seek nod for the selloff and the auction will be completed before March-31st.
So who will control Hutch in the new Financial Year ? The contenders are – Essar, Reliance Communications, Vodafone or Orascom. If Essar loses the bid, will they sell their 33% stake ? Maybe, but at a premium to HTIL’s deal as I can’t think of a scenario where Anil Ambani and Ruia brothers OR Orascom and Ruias will sit on the same board. However, Ruias may chair with Arun Sarin.
Tags: Hutch , Vodafone, Hutchison Telecom, Mobile India, Telecom India
I pray to God Almighty that Reliance does not get the control. Otherwise, they are sure to take the hutch customers for a ride and they will invent newer ways to achieve this end. Just one sample of how they cheat the mobile subscribers can be found here.
http://reliancemobilevictimsblog.blogspot.com/