Ruias may put few conditions
The Ruias of the Essar group will lay a few pre-conditions before agreeing to partner with Vodafone in the telecom joint venture, reports Indulal PM.india Updated: Feb 14, 2007 03:57 IST
The Ruias of the Essar group will lay a few pre-conditions before agreeing to partner with Vodafone in the telecom joint venture. Sources said that the group may look for enhanced role in the management of the joint venture.
"We are meeting the Vodafone team shortly. Internally, we are discussing several options, which include a more active role in the management of the telecom company,” said a source close to the Ruias.
Hong Kong-based Hutchison Whampoa Ltd, which has sold its 67 per cent stake to Vodafone, was managing the joint venture with Essar.
Essar is likely to have a more vibrant relationship with Vodafone since the UK company had already stated that the presence of Essar in the joint venture will help the company to clear the regulatory hurdles. Essar currently has four members on the Hutch board —Vikas Saraf, Anshuman Ruia, Ravi Ruia and Prashant Ruia.
As per the current board restructuring plan, Vodafone will replace all the eight Hutch nominees. The top management of the company is considering the offer extended by Vodafone and a decision is likely to be made in a couple of days, sources said. Essar currently owns 33 per cent stake in Hutch Essar. When contacted an Essar spokesperson said, “We are evaluating the offer made by Vodafone. They have said Essar will be the preferred partner. We have been given time and the matter will be decided in due course of time.”
First Published: Feb 14, 2007 03:57 IST