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January 16, 2007 17:33 IST
UK's Vodafone and Reliance Communications, the major suitors for Hutch-Essar, are contemplating picking up stake in Hutchison Telecom instead of buying HTIL's stake in the Indian mobile venture, The Wall Street Journal reported on Tuesday.
An alternate plan to acquire Hutchison Whampoa's 49.8 per cent stake in HTIL could be a wise move for both RCom and Vodafone, as it would give the buyer a controlling stake in Hutch-Essar through an indirect route, according to the report in WSJ's Asia edition.
Besides, such a plan would do away with the issues related to Indian partner Essar Group's Right of First Refusal, WSJ said quoting an unnamed source familiar with the deal.
Both Vodafone and RCom are currently studying the possibility of such a deal, although they seem to prefer a direct purchase.
When contacted, spokespersons of Vodafone and RCom declined to comment, while a spokesperson for Hutchison was not available. It said that Vodafone and RCom are considering this plan at the request of none other than Hutchison Whampoa.
The report said that HWL has been scouting for buyers for HTIL's stake for several weeks, but Essar Group has been claiming RoFR for any sale and has threatened to use various means to block a deal.
The race for Hutch-Essar: Complete coverage
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