(Associated Press via NewsEdge) Indian Commerce Minister Kamal Nath said he would meet with Vodafone Group 's chief executive Arun Sarin to discuss a possible bid to purchase a Hong Kong conglomerate's controlling stake in a leading Indian mobile phone company.
Sarin asked for the meeting to discuss a bid for the 67% stake held by Hong Kong-based Hutchison Telecommunication International and its associates in India's Hutchison Essar, Nath said.
Nath's comments come a day after Indian media reported that Vodafone officials were in India to start a due diligence process and has hired accounting firm Ernst & Young to scrutinize Hutchison Essar's books and New Delhi-based law firm Trilegal to assist in the process.
Vodafone, the Essar Group, an Indian conglomerate that holds the other 33%,and Hutchison's Indian office had declined to comment on the reports.
Nath said that EU Trade Commissioner Peter Mandelson had also called him to discuss regulations that would apply to a possible bid by Vodafone for Hutchison's stake.
The acquisition would help Vodafone gain a strong presence in one of the world's fastest growing mobile phone markets, but a bid could start a bidding war.
News reports have said Essar is interested acquiring its Hong Kong-based partner's stake in Hutchison Essar.
Reliance Communications, India's second-largest mobile phone company, and the London-based Hinduja brothers also have voiced interest. Malaysia's Maxis Communications and Egypt's Orascom Telecommunications are also reported to be in the race.
Vodafone emerged a front runner last week after making an approach that reportedly valued all of Hutchison Essar at between $17 billion and $18 billion.
© 2007 The Associated Press
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