Buoyant stock markets and booming telecom sector appear to have generated some interest among global equity players with Blackstone and Texas Pacific approaching Hutchison to buy stake in its India venture but the move could face hurdles.
Hutchison-Essar Managing Director Ashim Ghosh declined to comment on whether the company was up for sale or they have been approached by Blackstone and Pacific.
However, sources in the know indicated though Hutch was being approached by many a investor during the last one year, the Hong-kong based company has spurned such moves right in the beginning.
A day after a report by Wall Street Journal, the Financial Times of London also reported on its web site that Blackstone and Texas Pacific group are expected to begin takeover talks for the Indian mobile phone operations of Hutchison Telecommunications International Limited.
According to Financial Times, any sale of HTIL's 67 per cent stake in Hutchison-Essar, which has an enterprise value of $10 to $13 billion, would be Asia's largest private equity deal.
However, industry sources pointed out that the deal could face hurdles with Essar expected to fight strongly against any such move and it was possible for the corporate house to take legal recourse.
They said the latest action could be result of Providence, Citigroup and other investors succeding in buying out some equity in Aditya Birla Group's Idea Cellular ahead of its proposed initial public offer.
Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Discussion Group
