Hutchison Telecom is expected to complete the sale of its 67 per cent stake in the country's fourth largest telecom company, Hutchison Essar, before the Chinese New Year holiday, which begins February 17.

Hutchison Telecom had asked the interested companies to table their bids towards the end of this month before its board meeting, said one of the bidders.

Ashok P Hinduja, chairman of the $14 billion Hinduja group's Indian operations, told Business Standard that his group had signed a non-disclosure agreement with Hutchison Telecom and would table a bid in January.

Hutchison Telecom has sent bid documents to probable bidders and will allow them to examine the books of Hutchison Essar serially. British telecom major Vodafone started its due diligence on Monday and the Hinduja group will begin next week.

Reliance Communications, which is holding a board meeting tomorrow, is next. Meanwhile, the bankers who will be part of the consortium to fund the Ruias' bid to buy their majority partner out of Hutchison Essar, also started their due diligence.

Hutchison Telecom is believed to have set a floor price of $14 billion for its stake, but competition among the bidders is expected to raise the price.

While Vodafone will submit an independent bid, Reliance Communications, the Ruias and the Hindujas are expected to team up with financial institutions.

Sources in the know of the development said the Hinduja group would launch a special purpose vehicle for its bid in which it would retain majority control. The remaining stake would be held by financial institutions and private equity funds.

Manmohan not to meet Sarin

The Prime Minister's Office on Tuesday said Manmohan Singh would not meet Vodafone CEO Arun Sarin, who will be in India on Wednesday to meet government leaders.

"This is a private sector matter. There is no question of the government getting involved in it," the PMO spokesperson said.

Sarin will meet Communications Minister Dayanidhi Maran, Commerce Minister Kamal Nath and Vodafone's partner in India, Sunil Mittal, chairman of Bharti Airtel, in which it has a 10 per cent stake.

Mittal said he would meet Sarin but added that no plan for Vodafone's exit from Bharti Airtel was expected to be discussed until the British telecom company bought the Hutch stake.

"India has the best commercial laws in place. We would like things to happen smoothly. Indian companies are not used to hostile take-overs; it is for the parties concerned to look for arrangements which are in good commercial tradition," Nath said and added he would meet Sarin tomorrow. Nath has also spoken to European Union Trade Commissioner Peter Mandelson on Vodafone's bid for Hutch.