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NRI businessmen Hindujas on Monday began studying the books of Indian telecom firm Hutch-Essar for which they are understood to have roped in leading Spanish Bank 'Banco Santander' for financing the multi-billion dollar deal.
Ashok Hinduja, executive chairman of Hinduja TMT told PTI, "The due diligence has started already and since it is a very big deal, (for) how many days it will continue can only be known during the week. Our professional team is at the job".
According to sources, Fox Mandal, one of the country's oldest and largest full service legal Organisation is the legal adviser to the proposed exercise for the Hindujas, while US based company Deloitte and Touche has been appointed as adviser.
Banco Santander is Spain's most important private bank and its network of branches, stakes in other banks and takeovers extends well beyond the Spanish borders, to Portugal and Britain.
Hinduja, however, declined to disclose the composition of its professional team that would scrutinise Hutch-Essar's books, saying there is a non-disclosure agreement with the partners.
The company has put together a team of 30 professionals of legal, accounting and financial advisers. Hindujas were to undertake due diligence on January 24, which could not take place as other suitors had not completed the exercise then. Banco Santander offers retail banking and consumer finance in Spain, Portugal, and other parts of Europe.
Through other subsidiaries, the bank offers asset management, private banking, corporate and investment banking, and insurance. In one of Europe's largest cross-border bank mergers ever, it paid more than $15 billion for British bank Abbey National in 2004.
While Hutch-Essar's Indian partner Essar is through with confirmatory diligence of the company, Reliance Communications is in the process and British telecom giant Vodafone just weeks away from announcing a formal bid.
However, sources associated with the process said a decision on the sale of Hong Kong-based HTIL's 67 per cent stake in Hutch-Essar is unlikely before March.
Though keen on acquiring the mobile venture, the suitors are unlikely to fuel a bidding war. Vodafone CEO Arun Sarin had said during his visit to India last month that the company would not pay "over the top" in the multi-billion dollar battle.
The Hinduja group held 5.1 per cent stake in Hutch-Essar until June last year. Hindujas had put a non-binding bid for acquiring 67 per cent stake in HEL, the joint venture between the Essar group and Hong Kong-based Hutchison Telecommunications International Ltd.
The race for Hutch-Essar: Complete coverage
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