Anil Ambani group firm Reliance Communication Ltd is believed to have tied up resources for its bid to acquire Hutch-Essar, India's third largest private cellular operator, collectively with global equity players.

The company is understood to have mandated UBS as its advisor for raising debt and resources, investment banking sources said, adding if needed, Reliance Communication may raise an additional $4-5 billion from the market.

According to sources, RCL would want to retain up to 80 per cent in Hutch-Essar, which it is seeking to acquire along with four global private equity players. Reliance Communications [Get Quote] has evinced interest in acquiring the entire joint venture and not merely 67 per cent stake held by Hutchison Telecom International Limited.

In other words, the success would hinge on Indian promoter Essar's consent to sell its 33 per cent share.
RCL concluded borrowing of $1 billion from the international market on Friday. According to its latest financial statement, the company has cash reserves of more than $1.7 billion.

The company is in talks with four global private equity funds - Blackstone, Texas Pacific Group, Carlyle and Kohlberg Kravis Robert and Co (KKR) - to make a bid for Hutch-Essar. When contacted, RCL officials declined to comment on the development, while other players could not be contacted.

If the deal is successful, the two entities � Reliance Communication and Hutch-Essar - could have a combined value of about $34 billion. Reliance Communication, the second largest listed telecom operator after Bharti Airtel [Get Quote], enjoys a market cap of over Rs 92,000 crore (about $20 billion).

Hutch-Essar, which is not listed on the bourses, is being valued between $13-14 billion, according to investment banking sources. Bharti Airtel has a market capitalisation of about Rs 117,000 crore (Rs 1170 billion).

Hutch-Essar has more than 20 million mobile subscribers and a share of about 17 per cent in the Indian cellular market. It occupies the fourth place after Bharti Airtel, RCL and state-owned telecom firm BSNL.

According to sources, apart from Reliance Communications, two other foreign operators -- Orascom of Egypt and Maxis of Malaysia -- are also in the race to acquire Hutch-Essar.