Vodafone wins battle for control of Hutch Essar

VODAFONE, Europe's biggest mobile-phone group, appears to have won the battle for a controlling stake in Hutchison Essar with a bid that values India's fourth-biggest mobile firm at about $19 billion (£9.75bn), including debt.

India's Essar Group, which owns 33 per cent of Hutch Essar and had also been bidding for the 67 per cent being sold by Hutchison Telecommunications International, confirmed the deal yesterday.

Reports in India said that Vodafone had won the bid battle for the 67 per cent stake, defeating India's Reliance Communications and Hinduja group, as well as Essar, last night.

However, Vodafone declined to comment and Hutchison was not immediately available for comment.

The deal is a critical move by Vodafone chief executive Arun Sarin, who is under pressure, amid slowing growth in Vodafone's core European markets, to expand the business - while not overpaying for acquisitions.

India is the world's fastest-growing major mobile phone market and Hutchison Essar has a market share of 16 per cent.

Vodafone has a 10 per cent stake in India's number one player, Bharti Airtel, but Bharti chairman Sunil Bharti Mittal had said it was not keen to sell a further stake to the British group.