Ruias not to exit telecom ...

The storm kicked up by Vodafone emerging the winning bidder for Hutch Essar and its subsequent decision to share infrastructure with rival Bharti Airtel abated today.

The Ruias of Essar, the shipping-to-refinery group that holds 33 per cent equity in Hutch Essar, said they would stay invested even as Vodafone acquired the rest of the equity from Hutchison Telecom of Hong Kong.

"Essar is a long-term player in the telecom industry and we have no plans to exit this company or business. We intend to run it together with Vodafone," Essar Group vice-chairman Ravi Ruia told reporters after a meeting with Vodafone chief Arun Sarin.

Earlier, following Vodafone's announcement of sharing infrastructure with Bharti, the Ruias had appeared peeved, even threatened legal action.

In New Delhi, Bharti group chairman Sunil Mittal too pitched in."I have spoken with the Ruias today. They have no objection to our MoU with Vodafone and have categorically denied all the reports. They have not been quoted on the issue by the media and their only concern remains about being consulted on all common issues of the company." he added.

Even at present, he said, Bharti shared 25 per cent of its network with Hutch. That would go up to 100 per cent. "We don't want to have duplicate highways and a common platform will ensure better operation efficiency for both the companies," said Mittal.

Ruia, about the meeting with Sarin, said Vodafone had approached Essar to discuss a partnership. "We will ensure that all of our shareholder rights including under our shareholders agreement with Hutchison are adhered to," he added.

Sarin met the Ruias at their residence in South Mumbai and spent about two and a half hours there.

Upon emerging from the meeting, he told the waiting reporters: "We haven't taken any decision on anything, but we have started a chain of constructive talks... I have known the Ruias for a long time and I respect their partnership. We will now try to iron out issues and run the business together," he said.

Sarin met Essar Group chairman Shashi Ruia, vice-chairman Ravi Ruia and directors Prashant Ruia and Anshuman Ruia at their residence in Walkeshwar. The meeting started at about 12.30 pm and ended at about 3.00 pm.