Dec 18, 2006

Acquisition of the Hutch-Essar stake / Anil Dhirubhai Ambani Group

In the ongoing race for acquisition of the Hutch-Essar stake, Anil Dhirubhai Ambani Group (ADAG) is believed to have offered the Hong Kong based owner a deal comprising of cash and shares of Reliance Communication Limited (RCL), for his 52% stake in the current venture. RCL is also believed to be negotiating to retain the current managing director of Hutchison-Essar, Asim Gosh (who has a personal stake of 12% in the company) if it gains control. Hutchinson-Essar has been valued at around US$ 13 to US$14 bn. Others who are believed to be contending for the deal as well include, Bharti and Maxis (of Malaysia).

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