Ruias keep cards close to chest

The takeover battle for Hutch-Essar may have moved into the new year, but the fate of all bidders - Vodafone and Reliance Communications included - is still hanging in balance, with the Indian partner Ruias yet to take a call on its position.

While Hutchison Telecom (HTIL) confirmed that it was talking to all shareholders in the Indian venture, including Ruias' Essar Group, for a possible sale of the business, the Indian partner has not yet clarified whether it wants to stay put, buy out the foreign partner or simply exit the joint venture.

HTIL holds 67 per cent stake in India's fourth largest mobile player Hutch-Essar, which is being eyed by Anil Dhirubhai Ambani Group company Reliance Communications as well as British giant Vodafone.

However, Essar group's 33 per cent stake is crucial for a potential deal due to the partner's 'first right of refusal' clause in the JV agreement.

When asked whether the fate of all the bidders depend on Essar's decision to stay put or move out, an HTIL spokesperson said, "The shareholders of Hutchison-Essar are involved in the discussion, which may or may not lead to a transaction." While Essar is reportedly interested in buying out HTIL's stake in Hutch-Essar, it has not officially said so.

Reliance Communication and Vodafone have already announced their desire to acquire Hutch-Essar, while HTIL had said late last month that it has been approached by various bidders.

The HTIL spokesperson declined to comment on whether Essar has made its position clear on its first right of refusal clause, saying, "We do not comment on details related to shareholders' agreement."