Vodafone, Essar near partnership agreement

As a prelude to a new partnership agreement, senior Vodafone and Essar executives have held joint meetings with officials in the government, including the finance ministry.

The Vodafone team was led by Paul Donovan, chief executive officer (emerging markets). From Essar, vice-chairman Ravi Ruia, accompanied by Prashant Ruia and Rewant Ruia, attended.

Sources said things were moving towards a positive outcome for the Essars and the two sides were expected to "shake hands shortly." In fact, the terms of the partnership agreement, including a four-year put option, are learnt to have been finalised and an announcement is likely in a couple of days.

A source familiar with the Vodafone-Essar negotiations said, "Things have been almost resolved between Essar and Vodafone. The meetings with government officials are partly aimed at providing them the information they had sought, as also to allay any misgivings."

All three parties involved "� Vodafone, Essar and Hutchison Telecom, which recently sold its stake to Vodafone "� appear keen to resolve the issue and avoid legal complications and investigations.

These moves come after weeks of shadow boxing, including a recent petition in the Delhi High Court. The court, on a petition filed by Telecom Watchdog, directed the Foreign Investment Promotion Board to complete its enquiry into the Hutch-Essar shareholding within two months.