Thursday, 11 January 2007

Reliance to Raise USD 1 Bln, Bid for Hutch-Essar

Reliance Communications is likely to raise funds to bid for the Hutch-Essar. The board members of Reliance have given its Chairman Anil Ambani the green signal to go ahead with the acquisition.

The Directors also approved the issue of Foreign Currency Convertible Bonds in overseas markets worth up to one billion dollars. Reliance wants to acquire a controlling stake in Hutchison Essar, as much as 67 per cent.

Other bidders for Hutchison Essar include Vodafone Group, India's Essar Group and Maxis Telecommunications of Malaysia and Egypt’s Orascom.