Mobile phone group Vodafone is considering buying a controlling interest in Hutchison Whampoa's Indian mobile phone business, raising the prospect of a $13-billion-plus bid battle with India's Reliance Communications.
Vodafone said today the process was at an early stage, but its board believed the mobile market in India has great potential.
A move for Hutchison Essar would be consistent with its strategy of seeking selective acquisitions in developing markets, it said.
Confirmation of Vodafone's interest could draw out interest from Reliance, India's second-largest mobile services provider, which was considering moving on its smaller rival only after Vodafone revealed its strategy, the Economic Times reported today.
Hutchison Essar, India's number four mobile services provider, is 67% owned by Hong Kong tycoon Li Ka-shing's Hutchison Telecommunications International.
Hutchison has a market share in India of about 16%, Reliance's has a 20.4% share, and state-run Bharat Sanchar Nigam's has 16.5%.
