Hutchison on Hutch-Essar: Talk only over $14bn

As top bosses of Vodafone and Essar arrived here to negotiate a deal for acquiring Hutchison Telecom's Indian business, its parent company has indicated it will not consider any offer below $14 billion.

While Ravi Ruia, vice-chairman of Essar, the Indian partner in the JV Hutch-Essar, is here along with his advisor JM Morgan Stanley and investment bankers, British telecom major Vodafone CEO Arun Sarin too is in town for talks with Hutchison Telecom International, informed sources said.

Meanwhile, British newspaper Financial Times (FT) reported that Hutchison Whampoa, the parent company of HTIL, will only entertain offers "well in excess of $14 billion".

According to the report, Frank Sixt, Hutchison Whampoa's finance director, dismissed an indicative offer of $13.5 billion made this month by Texas Pacific Group, a private equity firm, and Maxis, a Malaysian mobile operator.

"That is not a valuation that would excite us... Really there has not been anything that would rise to the level of being an offer capable of acceptance," Sixt told FT.

The daily had spoken to Sixt before HTIL announced last week it had been approached by various interested parties.

When contacted, an Hutchison Whampoa spokesperson declined to comment on the deal size but added that the quotes of Frank Sixt in FT were correct.

An Essar spokesperson declined to comment, while Vodafone spokesperson could not be contacted.

Vodafone was the first player to make public its intention to buyout HTIL's 67% stake in Hutch-Essar, in which Essar being the partner has the first right of refusal.