The race for Hutch stake !

[petar 15]

Anil ambani has left out of India yesterday night. dunno where he is headed... hopefully to Hong Kong to close the deal.

[vmsanghrajka 0]

Anil ambani has left out of India yesterday night. dunno where he is headed... hopefully to Hong Kong to close the deal.

Any official confirmation or just spectlations... I hope, RCL accquires hutch rather than vodaphone as foreign firms r just exploiting indian consumers and hutch itself is the best example of this.. Let our Indian companies earn here and go global rather thn those.. (No i m not racist.. lol)

Cheers!

[linuxguy 0]

No ways! I would prefer Vodafone much over Reliance!

[petar 15]

Reliance or vodafon. All this is gonna change just the brand in short run. We shall notice diffrence only in long run. by then idea & airtel would have also changed thier structure, so u never know.

[deepu 0]

Being a vodaphone service user in UK I really like their service.

The best part is that if your prepaid phone will be active as long as you have balance on your account.

Wonder when such a facility will be provided by telcos in India

[linuxguy 0]

This is taking too long!! When is the deal gonna go through???

[abhay 0]

This is taking too long!! When is the deal gonna go through???

probably around 1-2 months more

[copperco2 24]

hey guys.. i just wondered... have you ever thought..

reliance buys hutch and gets into gsm.

right.

then :whistle:

(vodafone gets the greens and buys reliance.... )

think guys we could have variety in handsets..

thinking aloud

well well i will cheer for reliance...

Edited January 30, 2007 by copperco2

[Arun 795]

Anil Ambani to Be "Conservative" on Hutchison Essar deal

Feb. 1, 2007

Bloomberg.com

Reliance Communications Ltd., India's second-largest wireless operator, will be "conservative'' in its potential bid to gain control of Hutchison Essar Ltd., Chairman Anil Ambani said today.

"We will take a conservative stand, keeping in mind sustainable value creation and profit creation,'' Ambani told investors and analysts on a conference call today. "The Hutchison Essar opportunity will be decided over the next few weeks,'' barring unforeseen circumstances, he said.

Reliance, which aims to become the largest wireless operator in the world's fastest-growing cellular market, can take $5 billion in new loans and maintain its debt-to-equity ratio of one-to-one, Ambani said. His bid for Hutchison Essar may need to rival offers from competitors including Vodafone Group Plc, the world's largest wireless operator by sales.

Hutchison Essar at the end of 2006 had 23.3 million customers, or a 16 percent share of the Indian wireless market, where less than one in seven people own a mobile handset.

Acquiring India's fourth-largest operator would give Ambani 53 million subscribers, or a 36 percent market share, as well as a GSM network in 16 of India's 23 telecommunication zones. Mumbai-based Reliance Communications is currently the nation's largest CDMA-based wireless operator.

India's Hinduja Group earlier today said it intends to make a final bid after studying Hutchison Essar's financial statements and operations. The due diligence will commence on Feb. 5, group Vice Chairman A.K. Das said in an interview.

Meanwhile, Vodafone Chief Executive Officer Arun Sarin yesterday said the Newbury, England-based company will bid for Hutchison Essar "within days, weeks'' and will be "highly price disciplined.''

[copperco2 24]

'price disciplined' then 'altitude sickness' wowwwy.

we are getting acquainted with business vocab.

great

[HetalDP 947]

Very much True Copper

[vmsanghrajka 0]

Whose Hutch is it? wonders Anil2007-02-02 09:09:45 Source : Moneycontrol.com

Reliance Communications Chairman Anil Ambani is brimming with confidence. He says his company will have no problem raising debt, and has raised the company's capex guidance for the next fiscal. CNBC-TV18 has the details.

Whose Hutch is it? That will be decided in the next couple of weeks says Anil Ambani. Addressing analysts in a conference call, Ambani said Reliance Communications would take a conservative stand on Hutch keeping in mind the company's objectives.

"Being an in-market consolidation, it brings us significant cost and operating synergies. However we will take a conservative stand on this opportunity keeping in mind our overriding objective of sustainable value creation and profitable growth," says Ambani.

That might be an attempt to play down valuations, which have reached astronomical levels of USD 20 billion. After all, on Wednesday Arun Sarin said he would not overpay for Hutch. So, this could be positioning by Reliance Communications ahead of the final bid. Ambani also said raising debt would pose no problem.

The strategy is clear. Ambani is betting big on GSM, Hutch or no Hutch. R-Com has already created additional capacity of 10 million GSM lines, and that's not all. Coverage of GSM services has been extended from 600 to 2,200 towns. R-Com's GSM spectrum application is pending with the government and Ambani is confident of getting the spectrum this year.

[copperco2 24]

with hutch it gets a ready infrastructure and good management team.

just like TATA- CORUS deal. did tata buy corus for indian pride... i dont think so.

the reason is the infrastructure and the cost that will have to be consudered for a brand new set up.

[HetalDP 947]

POSCO Steel is making a New Plant of 9 million ton in INdia with Expected Cost of 45000 Crores Rs. 5000 is being INvested and the Plant will Start on 2012 and the Plant will make profit on 2013

CORUS is 19 million ton / year Company and is already baught at 55,000 and is already working an making Profit.

This same thing applies here Nobody will mind to Give something more if he gets ready made business, Greate Cream Subscriber base. Good Footage to many segment and if it directly fits into our Strategy.

The Deal is key for Vodafone Entry as well as Reliance.

[copperco2 24]

for reliance it is only abt the time..

for vodafone its everything.

so when they say their valuations are going to be conservative.. guys i am very sure that they are going to be above 20b$.

As the owner of Hutch..wham.. says 'make me an offer i will not be able to refuse'. (godfather)

such offers are never made by being a conservative player .

[HetalDP 947]

Tomorrows on 09-Feb-2007

First Round of Bid for Hutch is Expected

Vodafone, Reliance and Essar to Put Individual Bid.

Hindujas to bid with some Strategic Partner.

Edited February 8, 2007 by hpnasik

[copperco2 24]

cross tha fingers.. min.

[HetalDP 947]

Bids are Likely to be UNder 18 Billion Dollors as per Sourcees: CNBC

[HetalDP 947]

Russia's Altimo surprise 5th bidder for Hutch? 2007-02-09 12:55:19 Source : Moneycontrol.com Even as the Hutch Board is scheduled to meet on Sunday to discuss the bids for its stake in Hutch-Essar, a fifth bidder has joined the race. Sources told CNBC-TV18 that Russia's Altimo has thrown its hat into the ring as the fifth suitor for the Hutchinson's stake in the teclecom joint venture. The other bidders are Reliance Commmunication, Vodofane, Essar and Hindujas.

The frontrunner will be clear by Sunday.

The bids have to be submitted by midnight, Hong Kong time. . Further, there is some ambiguity on whether Essar will put in their bid or not because there is an opinion within Essar that if they put in the bid, then it could dilute its right of first refusal. So they would want to stay back to wait and watch and see what happens.

There is going to be a shareholders' meeting on the February 15, but now it looks like that will be more to get their consent for the final bid to a particular bid. SO experts expect a lot of action over the next couple of days.

If any particular player does not submit the bid by then, then it will obviously be out of the race. So there is no ambiguity on that.

Regarding the price of bids, sources say they are likely to be under USD 18 billion. HDIL have already made it very clear that they are not going to look at any bids, which are below the USD 14 billion marks, so that benchmark remains and it will have to be over and above that. But the sense experts are getting is that the bids are going to be conservative. However, it is important to know that Hutch itself has hit back saying that it is not so desperate to sell, it's not in hurry to sell, it will sell only if it will think that the price is attractive enough.

So clearly both, the buyers and sellers are trying to position themselves what range of bids will one see. So it's wait and watch for now.

Edited February 9, 2007 by hpnasik

[vmsanghrajka 0]

Hutch sale starts, bids in, auction follows

Arun Kumar and Indulal PM

New Delhi/Mumbai, February 9, 2007

The battle to buy Hutchison Essar entered a decisive stage on Friday, with three of the four contestants in the fray meeting the midnight deadline for submitting their rival bids. All three bids have been submitted by e-mail.

On the block is the Hong Kong-based Hutchison Telecommunications International Ltd’s (HTIL) 67 per cent stake in the telecom major, for which the British telecom giant Vodafone Plc, the Anil Ambani-owned Reliance Communications Ltd, Essar, which controls the remaining 33 per cent stake, and the Hindujas are all vying. The first three have submitted their bids, while the Hindujas, who completed their due diligence on Friday, are also in the race.

An HTIL board meeting was likely to be called on February 11 to approve the bidding process, said sources close to the deal. This will be followed by an extraordinary general body meeting (EGM) soon after.

These sources said the first two bids were in the vicinity of $18-20 billion (Rs 81,000-90,000 crore), while Essar’s was somewhat lower. The Essar group, which has the first right of refusal over HTIL’s 67 per cent stake, has reserved its rights and participated in the bidding process. Sources close to Essar said they had tied up with Stanchart and Citigroup for financial assistance, which would be above $16 billion.

“We have been informed that after receiving the bids, HTIL will reveal the highest price offered to each of the remaining bidders separately,” said one of the bidders, adding: “Each will be asked if they want to revise their bid. It will be very similar to the bidding over Corus, except that, in that case, the United Kingdom’s Takeover Panel was the regulator. In this case HTIL will handle the bidding itself.”

http://www.hindustantimes.com/news/5922_19...02100000000.htm

Edited February 10, 2007 by vmsanghrajka

[Arun 795]

There was a fourth bidder too, Russian company: Altimo

[abhay 0]

Hindujas with QTel, Altimo in bid for HEL

NRIs business group Hindujas have joined hands with Qatar Telecom and Russian telecom giant Altimo in the race to acquire Hutch-Essar, which has reached a decisive stage with bids pouring in from various suitors.

Hindujas have already submitted a binding bid for acquisition of controlling stake in India's fourth largest mobile player and contrary to speculations have not sought any extension for making its offer, sources close to the development said.

They discarded suggestion that Hindujas-led consortium had put up a non-binding bid while seeking some more time for a firm offer.

The bid from Hindujas, as also from Reliance Communications, Essar and Vodafone, are expected to be considered on Sunday by the board of Hong Kong-based Hutchison Telecom International (HTIL), which has put its 67 per cent stake on the block.

Spokesperson from either Hindujas, Qatar Telecom or Altimo could not be contacted for comments.

Various reports had suggested that Hindujas sought a day's extension from HTIL for submitting its bid as it was still in the process of completing due diligence for a possible deal.

According to the merchant banking sources, HTIL's board of directors is scheduled to discuss various bids, including that of Hindujas, on Sunday.

Besides Hindujas, Indian telecom giant Reliance Communications, UK-based Vodafone and Indian conglomerate Essar Group, the 33 per cent partner in Hutch-Essar, have also submitted their initial bids for acquisition of controlling stake in the target company.

While an HTIL spokesperson was not available for comments, the sources close to the development said it could still be a long-drawn battle before a final outcome is reached for the takeover deal.

The bids have been made in the range of $16-20 billion of enterprise value for entire Hutch-Essar, sources added. Meanwhile, Wall Street Journal quoted Hinduja Group Chief Financial Officer Prabal Banerji as saying that Hinduja Group has submitted a bid but that it was still conducting its due diligence.

According to WSJ report, the bids value the company about 3 per cent higher than the $16.5 billion previously offered by some of the bidders in non-binding proposals several weeks ago.

http://economictimes.indiatimes.com/News/N...how/1589515.cms

[vmsanghrajka 0]

I saw a news flash on CNN IBN that vodaphone is front runner in the race and the bid is around 18-19 billion USD and Reliance Comm is goin to issue a statement very shortly.. Story is unfolding minute by minute.. Its interesting

[Arun 795]

yes, thats right

Hutch-Essar bid: Vodafone emerges likely front-runner

Press Trust of India - London/Hong Kong - February 11, 2007

The Hutchison Telecom International (HTIL) board is understood to have concluded its meeting on the bids received for its 67% holding in Hutch-Essar amid indications that British telecom giant Vodafone has pipped other suitors.

According to a report on CNBC TV 18, which did not cite any sources, Vodafone is said to have bid a enterpise value of $18-19 billion for the Hutch stake.

However, there was no confirmation from either HTIL or Vodafone, Reliance Communications, Hindujas and Essar, the Indian partner in the venture with 33% stake, which had also submitted its bid on Friday.

Update:

Yes, its official... Vodafone has won... please continue in this thread.