<b>Hutch-Essar:</b> Sarin, Ruia meet Chidambaram

Arun Sarin, CEO of Vodafone and Shashi Ruia, chairman, Essar today separately met Finance Minister P Chidambaram, presumably to discuss the developments related to the acquisition of Hutch Essar.

Sarin discussed the British company's future plans in India during his meeting with Chidambaram, sources said.

After the meeting, Sarin said the company has already started examining the books of Hutch Essar and would finish the exercise within a couple of weeks.

"Due diligence (Hutch Essar) has started... it will be completed in a couple of weeks," he said.

Sarin and Ruia's meetings with Chidambaram assume significance in the wake of Vodafone announcing early today that it was open to partner with Essar for Hutch Essar.

Meanwhile Essar, which has 33% stake in Hutch Essar company, begun its due diligence today.

Shashi Ruia had earlier this week said the group was interested to buyout Hong Kong-based Hutchison Telecom's 67 per cent stake from the joint venture.

Updated at 1400 hrs: Follow best norms, Nath to Sarin

Vodafone CEO Arun Sarin today held discussions with Commerce Minister Kamal Nath who asked the UK telecom giant to follow best commercial practises in its bid to acquire Hutch-Essar.

"It (a deal) should be done in a transparent manner in accordance with best commercial practices. And in the best interest of all stakeholders," Nath told Sarin who arrived here early this morning to pursue the acquisition of India's fourth largest mobile venture.

Sarin told reporters after the meeting the talks were "fruitful" and that "formal bidding was still a few weeks away."

When asked whether that meant the bids would come by the end of this month, he said: "Later than that."

On whether he sought clarifications from Nath on FDI regulations in India, Sarin said: "Regulations are clear."

Sarin had met Bharti Airtel chief Sunil Mittal in the morning. Mittal, speaking to mediapersons, said the issue of Vodafone divesting its nearly 10% stake in Bharti is "at a preliminary" stage, and refused to comment on the issues discussed.

Sarin, told PTI on his arrival that Vodafone was looking to buy whatever stake is available in Hutch-Essar and put in a bid in the next few weeks.

Hutch-Essar, the country's fourth largest mobile player, is 67% owned by Hong Kong-based Hutchison Telecommunications International and 33% by Essar.

Meanwhile, Communications Minister Dayanidhi Maran, ahead of his scheduled meeting with Vodafone CEO Arun Sarin, said the government wanted good companies to enter the country.

"We want good players to come to India. Whatever they do (thereafter) is their business," he told PTI while commenting on the interest generated by the country's telecom sector.

Without mentioning Vodafone's bid for Hutch-Essar, he said: "The recent development (of foreign players interest in acquiring Indian firms) shows the strength of India's telecom sector and proves that the sector is growing. It also proves that we made the right decision in increasing FDI cap to 74% per cent."

He said the FDI policy for the telecom sector was "a clear signal" to the foreign players about the growth and opportunities in the Indian telecom market.