<b>Hutch-Essar:</b> HTIL seeks nod for stake sale

Hutchison Telecom International (HTIL) is believed to have called a meeting of shareholders on February 15 to seek their approval for the proposed sale of its 67% stake in Hutch-Essar. HTIL's board is believed to have taken stock of the current position yesterday.

The meeting to seek shareholders' permission could be called either under an annual general meeting or as an extra-ordinary general meeting as decided by HTIL, sources said.

HTIL will have to file the outcome of the meeting with the regulatory authorities.

Considering that Hutchison Whampoa group holds majority stake in HTIL with Egyptian mobile operator Orascom holding 19%, shareholders approval should not be a difficult task.

HTIL will have to explain the rationale of exiting its most profitable market to the shareholders.

When contacted, an HTIL spokesperson declined to comment saying: "We do not discuss shareholders matters".

Once the shareholders give the go-ahead, HTIL board can look at the offers which could be in the form of formal bids after that.

British mobile major Vodafone has said that it would submit a formal offer in the second week of February. The other interested parties are HTIL's 33% partner Essar group and the Hinduja group.

The three companies have offered preliminary bids so far, while another suitor, Reliance Communications, is understood to have completed due diligence.