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Reliance, Maxis, Orascom join race for Hutch stake

18 Dec 2006
00:00
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(The Statesman via NewsEdge) The race for acquiring India's third largest mobile services provider Hutchison Essar has heated up, with Reliance Communications, Malaysia's Maxis, and Egypt's Orascom joining the fray.

Hutch Essar is believed to be valued between $13 billion to $14 billion and a call for the suitor could be taken in less than a month, investment banking sources said.

Hutchison Telecom International and corporate giant Essar, the two joint venture partners have declined to comment on speculations.

Reliance Communications, a part of the Anil D Ambani Group is believed to have tied up with four American private equity funds Blackstone, Texas Pacific Group, KKR and Carlyle

Sources also said Malaysia's Maxis, which has a majority stake in another telecom operator Aircel in India, is believed to have engaged Standard Chartered as its adviser. Orascom, which has more than 19% stake in Hong Kong-based HTIL, meanwhile has appointed Deutsche Bank as its adviser.

Essar, which has been maintaining a stoic silence over the development, is understood to have told its joint venture partners that it would not be averse to exit from the venture if the valuation was right.
Hutchison adviser Goldman Sachs is said to be dealing with the three bidders and that a decision could be made in the next few weeks

© 2006 The Statesman

© 2006 Dialog, a Thomson business. All rights reserved

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