British telecom giant Vodafone Group, which announced today its intention to acquire a controlling stake in one of India's leading mobile operators, Hutch-Essar, has mandated Swiss banking major UBS to advise on the deal."UBS are our advisers (on this deal) and have been advisers on a substantial number of transactions for Vodafone," a company spokesperson told PTI.Although the spokesperson did not divulge details, investment banking sources close to the development said that UBS is involved in the evaluation of Hutch-Essar as well as other financial aspects of the deal. Vodafone is also believed to be in talks with various other banks to help in raising funds for a possible acquisition of Hutch-Essar.Since there are various potential bidders from across the world for Hutch-Essar, no final outcome is expected very soon,. Hong Kong-based Hutchison Telecom International today said it has been approached by various parties for acquisition of its Indian venture.Vodafone also declined to comment on whether it has approached the Indian partner Essar in the target company for taking them into confidence."We are at an early stage in this process and cannot speculate on timing (of the deal)," the spokesperson added.UBS, the world's largest wealth manager, is also believed to be involved in fund raising for another potential bidder Reliance Communications. The Indian firm is yet to formally announce its approach for Hutch-Essar, whose valuation is being estimated at up to $17 billion (Rs 76,500 crore).Meanwhile, British magazine 'Financial News' reported that UBS could become entangled in a row over perceived conflict of interest, after it emerged that the bank was advising Vodafone, one of the potential bidders for Hutchison Essar, while financing a private-equity backed rival offer from Reliance Communications at the same time.Investment banks are allowed to advise one bidding party, while providing financing for another offer, provided rigorous safeguards that prevent teams from sharing information are in place, the report said.The report quoted an unnamed legal analyst specialising in conflicts of interest law who said: "UBS would need to be vigilant and adhere stringently to the distinction between its leverage and corporate finance activities to avoid a potential morass of conflict."
