Ruias begin fresh round of talks with Hutch

In a sudden development, Ravi Ruia, vice chairman of Essar and Prashant Ruia, director began fresh round of talks with Hong Kong-based Hutchison Telecom International (HTIL), which has put its Indian business on the block.

Sources close to the development said Ravi Ruia and Prashant, son of Shashi Ruia, group chairman of Essar, are believed to be talking to their foreign partner HTIL possibly to resolve the differences on the first right of refusal.

The first right of refusal arms Essar with the power to match the highest bid for HTIL's stake by any other suitor.

Asked if HTIL, which has been talking to various interested parties, has taken a view on Indian partner Essar's offer to buyout its 67% stake, a company spokesperson told PTI: "We don't comment on speculation." The spokesperson also refused to comment whether Ruias had started another round of talks with HTIL in Hong Kong. The Essar spokesperson and officials could not be contacted.

Sources, however, said both Essar and HTIL are understood to have taken legal opinion on the contentious issue of first right of refusal to emphasise their viewpoint.

In case the issue is not resolved amicably and HTIL decides to sell stake to any another suitor without Essar's consent, then a legal battle could not be ruled out, the sources said.

While Essar is understood to be emphasising that its 33% stake gave it the first right of refusal, HTIL is believed to be pointing out that out of this, only 11% stake was Indian, while the remaining was through foreign entities.