Hutchison Telecommunications International Ltd. has requested the Indian courts to keep it informed of any legal suit filed by the Ruias.
MUMBAI: Hutchison Telecommunications International Ltd. has requested the Indian courts to keep it informed of any legal suit filed by the Ruias, its former Indian mobile phone joint venture partner, the Economic Times said on Friday.
Hutchison Telecom agreed last month to sell its 67 percent stake in Hutchison Essar, India's No.4 mobile carrier, to Britain's Vodafone Group Plc. for $11.1 billion, but anticipates a plea by Essar, which holds the other 33 percent in the venture, to exercise a right of first refusal.
Essar, run by media-shy billionaire brothers Shashi and Ravi Ruia and with interests in shipping, steel, oil, power, construction and back-office sectors, has consistently maintained it had the right of first refusal if Hutchison were to sell its stake in Hutchison Essar.
Hutchison says this only applied if it sold to local firms. The newspaper said Hutchison Telecom had filed a caveat, a notice that ensures no legal action is taken without knowledge of the party filing the caveat, in Mumbai and New Delhi courts.
No one at Hutchison Telecom could be immediately reached in Hong Kong, while a spokesman for the Essar group said it had not yet received information regarding the caveat.
Hutchison Telecom shareholders are due to vote on the Vodafone deal on March 9.
Vodafone and Essar representatives met in London last week, but discussions were far from smooth, the Economic Times said.
While the Ruias are seeking joint management rights, a hike in shareholding and a put option, Vodafone is yet to make up its mind over the demands, the paper said, citing unnamed sources.
Essar has said it may seek to raise its stake and wanted joint management of the mobile joint venture.
Vodafone has offered to buy the Ruias stake in Hutchison Essar at the price it paid Hutchison, but Essar has said it wants to stay on in India's fast-growing telecom industry.
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