Vodafone chief Arun Sarin on Wednesday said his company was interested in buying whatever stake is available in India's mobile service provider Hutch Essar and will put a bid for it in the next few weeks.
Sarin said he was also open to partner with Essar, which has 33 per cent stake in Hutch Essar and described Ruias as "good partners".
Sarin held talks with the Commerce minister Kamal Nath and Finance Minister P Chidambaram. During the meeting with Chidambaram, Sarin is understood to have discussed the British company's future plans in India, sources said.
Sarin said the talks were "fruitful" and that "formal bidding was still a few weeks away." On whether he sought clarifications from Nath on FDI regulations in India, Sarin said: "Regulations are clear."
Essar vice-chairman Ravi Ruia also held talks with Chidambaram. Essar group chairman Shashi Ruia had earlier this week said they were interested to buyout Hong Kong-based Hutchison Telecom's 67 per cent stake from the joint venture.
Sarin and Ruia's meeting with Chidambaram assume significance in the wake of Vodafone announcing that it was open to partner with Essar for HEL.
Vodafone has already started the due diligence of HEL, while bankers of Essar, which has 33 per cent stake in the joint venture company, are likely to initiate a similar process in a day or two.
Sarin also held discussions with Commerce Minister Kamal Nath, who asked the UK telecom giant to follow best commercial practices in its bid to acquire Hutch-Essar.
"It (a deal) should be done in a transparent manner in accordance with best commercial practices... and in the best interest of all stakeholders," Nath told Sarin.
Ahead of his scheduled meeting with Vodafone CEO Arun Sarin, who is bidding for Hutch-Essar, Communications Minister Dayanidhi Maran on Wednesday said the government wanted good companies to enter the country.
Meanwhile, the board of Reliance Communications, a serious contender for Hutch-Essar, authorised its chairman Anil Ambani to pursue the acquisition, including raising long-term resources for the deal.
Ambani was given the go ahead to take all necessary steps for a possible acquisition of of Hutch-Essar Ltd and raise long term resources in the form of External Commercial Borrowings, the company said in a statement after the board meeting on Wednesday.
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.
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.
Additional inputs: PTI
