Five is a crowd : Hutch Saga
Posted by tggokul on January 7, 2007
Another company has joined the fray to make it a five way race to buyout Hutch. My earlier blog had suggested that there were four companies (Essar, Vodafone,Reliance and Verizon) in the running. Now the Hindujas Group have expressed interest as well. And to make it even interesting, they have claimed that thy have got a favourable response from the Hutchinson Group.
In a related news, there have been concerns raised by Vodafone’s investors that Vodafone might overpay for Hutch and that lead that to a company press release saying that Vodafone would comply by its Mergers and Acquisition Criteria. This is a strict financial criteria introduced by its CEO Arun Sarin last year to prevent over-exuberance. I believe this race is so heated, that Vodafone would have to relax this if they want to compete. The other groups have very deep pockets and they will blow away Vodafone’s chances if they stick by their criteria.
The situation is so muddled. Atleast for the sake of the thousands of employees, Hutch needs to make a quick decision and stick with it.