Vodafone CEO Arun Sarin on Thursday met key members of the Ruia family, as part of efforts to woo the Essar Group to ensure smooth sailing of mobile venture Hutch-Essar, where the UK company is acquiring majority stake. Sarin, fresh from clinching the deal with Hutchison Telecom earlier this week, along with his top lieutenants from Vodafone met Essar chairman Shashi Ruia, vice chairman Ravi Ruia, Essar Group directors Prashant and Anshuman at the Ruia residence in Mumbai.
The meeting comes amid reports that Essar was peeved by Vodafone's announcement relating to network sharing with rival Bharti Airtel without consulting the group, which holds 33 per cent stake in Hutch-Essar and that the Indian partner was contemplating legal action.
Ahead of the meeting, Sarin had on Wednesday sought to placate Ruias saying: "It is our sincere desire that Ruias continue.... It is my first, second and third preference to have them as our partners," while promising to deliver roses on the occasion of Valentine's Day.
Sarin's meeting with the Ruias also assumes significance given Vodafone's offer to buyout Essar from the venture at the same terms given for acquiring Hutchison Telecom's 67 per cent stake.
The Vodafone chief has, however, ruled out paying a premium to pick the stake of Ruias and that he would respect their decision if they want to concentrate on their other businesses -- oil refining, steel and shipping.
He has also said that it was his company's view that Essar does not have Right of First Refusal in Hutch-Essar. "It is our opinion and our lawyers opinion."
On ignoring Essar in decision making process, he had said the Indian partner would be consulted as a 33 per cent stakeholder should be.
Sarin had also justified the agreement with Bharti Airtel on network sharing, saying: "We were working on a real time basis. Essar also made an offer when we made an offer (for buying out Hutchison's 67 per cent stake) and since we were involved in disengagement talks with Bharti, we also signed this MoU."
He had said if Essar decides to exit, Vodafone has other options, including minority shareholders increasing their stake to 26 per cent. "...Another obvious option is that we will go with another Indian partner... its all too early to say."
The race for Hutch-Essar: Complete coverage
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