(Associated Press via NewsEdge) Vodafone Group, the world's largest mobile phone company, has begun examining legal issues relating to a possible bid for Hong Kong-based Hutchison Whampoa's controlling stake in a leading Indian mobile phone company, news reports said.
A successful acquisition of the 67% stake held by Hutchison Telecommunication International and its associates in India's Hutchison Essar would help Vodafone gain a strong presence in one of the world's fastest growing mobile phone markets.
But Vodafone faces a tough bidding war and several legal and regulatory complications involving Hutchison Essar, a joint venture company in which the remaining 33% is held by an Indian business conglomerate, the Essar Group, that some legal experts say has the first right to buy Hutchison's stake.
Reliance Communications, India's second-largest mobile phone company, Malaysia's Maxis and Egypt's Orascom are also in the race for what could be the biggest ever acquisition deal in India.
Vodafone emerged a front runner last week after making an approach that reportedly valued Hutchison Essar at between $17 billion and $18 billion.
About 15 senior officials from Vodafone are in India to start a due diligence process, said reports in the Economic Times and Business Standard newspapers.
The company has hired accounting firm Ernst & Young and New Delhi-based law firm Trilegal to assist in the process, the reports said, without naming any source.
Vodafone's London office declined to comment on the report. Officials from Essar Group and Hutchison's Indian office also declined to comment.
© 2007 The Associated Press
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