Reliance Comm may bid for Hutch Essar

The Anil Ambani group's Reliance Communications is believed to be considering a joint bid with private equity firm Blackstone for acquiring Hutchison Telecommunications International's 67 per cent stake in Hutchison Essar.

According to a report in the Wall Street Journal, the deal may be valued at over $8 billion (Rs 36,000 crore), excluding debt. The report said the other possible bidders included the Texas Pacific Group.

However, a spokeswoman for Hutchison Telecommunications in Hong Kong said the company did not comment on market rumours.

When contacted, a Reliance Communications spokesperson denied any such move. A spokesperson for the Essar group said he was not aware that Hutchison's shareholding in the company was up for sale and therefore could not comment.

The Essar group controls a 33 per cent stake in Hutchison Essar, the third largest player in the country's telecom industry after Bharti Airtel and Reliance Communications. Hutchison Essar has about 20 million subscribers, more than double the number a year ago.

A recent Morgan Stanley study put the valuation of Hutchison Telecommunications' Indian assets at 75 to 80 per cent of its total value, which was pegged at around $11 billion.

Blackstone was considering raising a $5-billion fund focussed on India infrastructure investments, the Wall Street Journal said in the report.