Vodafone-Essar mobile phone dispute deepensSeptember 9th, 2008 - 2:39 pm ICT by ANI
Mumbai, Sept.9 (ANI): Differences between Vodafone and Essar, its Indian partner has reportedly deepened after the former won an order blocking the sale of shares of a mobile phone unit controlled by the Essar Group.
According to the London-based Financial Times, an arbitration panel has ordered Essar to freeze the sale of any shares of the mobile unit, BPL Mobile Communications, including those of one of its most important subsidiaries, Loop Telecom.
The order has imposed significant constraints on the ability of BPL and Loop to dispose of their assets pending the arbitration outcome.
Loop, which holds 21 mobile phone network licences, has been touted for sale at a price tag of up to 2.5 billion dollars.
The arbitration order could stop the Loop sale but a person familiar with the issue said Loop could still bring in strategic investment using means other than the direct sale of existing shares.
Vodafones partnership with Essar began last year when it bought a controlling 67 per cent stake in Hutchison Essar, the countrys number three mobile operator, from Hong Kong conglomerate Hutchison for 11 billion dollars.
Essar, controlled by the Ruia family, retained a 33 per cent stake in the joint venture, which was renamed Vodafone Essar, after a period of intense negotiations over the terms and conditions of the partnership with the UK groups former chief executive officer Arun Sarin.
As part of the deal, Vodafone inherited a dispute between Hutchison and Essar over the ownership of BPL Mobile Communications, a small mobile phone company with operations in Mumbai and about one million subscribers.
Hutchison had agreed to buy the company from Essar more than two years ago for 400 million dollars.
The deal ran into trouble after the Indian group claimed its Hong Kong partner had missed a deadline for obtaining regulatory approval for the sale. When the sides could not agree a solution, the dispute moved into arbitration. (ANI)
- 2G: Court order on CBI's fresh set of charges Dec 21 (Lead) - Dec 17, 2011
- Government's plea for Vodafone verdict review dismissed (Lead) - Mar 20, 2012
- 2G: Loop Telecom, Essar move high court - Jan 05, 2012
- Government seeks review of Supreme Court's Vodafone verdict (Lead) - Feb 18, 2012
- 2G: Court summons five corporate honchos (Second Lead) - Dec 21, 2011
- 2G: Arguments on charges against Essar, Loop Thursday - May 02, 2012
- 2G: Court summons five corporate honchos (Lead) - Dec 21, 2011
- Vodafone files petition against tax authorities move - Oct 15, 2010
- India's apex court saves Vodafone $2.2-bn tax burden (Roundup) - Jan 20, 2012
- Vodafone to buy out Essar's stake in Indian subsidiary for $5 bn - Mar 31, 2011
- Government to amend law to tax Vodafone-type deals - Mar 16, 2012
- Surprised by cognizance in 2G case: Essar - Dec 21, 2011
- 2G: Arguments on charges against Essar, Loop promoters from May 3 - Apr 21, 2012
- Pirmal Healthcare scrip up 1.62 percent day after Vodafone deal - Aug 11, 2011
- Government seeks review of Supreme Court's Vodafone verdict - Feb 17, 2012