Date:14/02/2007 URL: http://www.thehindubusinessline.com/2007/02/14/stories/2007021404830100.htm

Back Vodafone offer for Essar stake in two weeks

Thomas K. Thomas

To bring low-cost handsets to India

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Mr Arun Sarin, CEO, Vodafone, said that it was aiming to be the number one player soon.
Bharti Chairman Mr Sunil Mittal said that he would be happy to see Vodafone as a strong number two player.
Vodafone also said that it would retain Mr Asim Ghosh as the Managing Director of the new company.

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Barcelona Feb. 13 Even before Vodafone launches its services, the battle for top slot has already begun. While Mr Arun Sarin, CEO, Vodafone, said that it was aiming to be the number one player soon, the Bharti Airtel Chairman, Mr Sunil Mittal, said that he would be happy to see Vodafone as a strong number two player and not beyond that.

Vodafone on Tuesday also confirmed that it would make an offer to Ruias-promoted Essar to buy out its 33 per cent stake in Hutchison Essar at the same valuations given to Hutchison Telecom. Vodafone also said that it would retain Mr Asim Ghosh as the Managing Director of the new company.

"We will make an offer to Essar in two weeks. But at the same time we want them to remain in the company as our partner because they have been associated with Hutchison Essar for the past seven-eight years. They have contributed to building the company, therefore it would be best if they chose to remain. However, we will give them an option to liquidate the equity," said Mr Arun Sarin on the sidelines of the 3GSM World Congress.

Mr Sarin also said that once the transaction was complete, the Hutch brand would be dropped and replaced with Vodafone's branding, though initially the company would adopt a dual brand strategy. Mr Sarin, who will be in Delhi on Wednesday, also met the Communication and IT Minister, Mr Dayanidhi Maran.

Mr Sarin said that Vodafone would be looking at rolling out its services in rural India where there was huge potential. He also said that Vodafone would be bringing in low-cost handsets to India.

On the company's strategy, Mr Sarin said that he would like to be the top operator in India very soon.