Not so fast, insists Essar

Excerpts from Power Breakfast on CNBC-TV18 Watch the full show » ALSO READ See latest News about Essar Tele See previous management interviews See what other Experts & Brokerages are saying about Essar Tele Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

Remember it's never done till it's actually done - it looks like the Hutch-Vodafone deal is about to taste the proverbial slip between cup and lip. CNBC-TV18 reports that's because Essar continues to hold the ROFR sword on Hutch's head.

Will Essar play party pooper to India's biggest deal? The Ruias continue to insist that they have a right of first refusal on Hutch's stake, no matter who the buyer. And if Essar fails to reach a mutually acceptable agreement with Vodafone, it will not hesitate to exercise the right or drag the matter to court. Not surprisingly, Hutch has a very different stand on the matter.

"I think the case is really for Essar because apparently, there is no first right of refusal clause in our shareholders' agreement in terms of selling assets to a company like Vodafone. We cannot stop people from doing what they think is the right thing to do. But we think it is not a reasonable or sensible thing to do because it is not protected by the law. And as a matter of fact, Essar was a bidder but their bid was not the highest so they were not chosen," says Dennis Lui, CEO, HTIL.

It's not that Vodafone was definitely the highest bidder - rumour has it that Hindujas topped, but Hutch won't comment on that. All it said was that the bid was awarded on the basis of the bidders ability to conclude the deal and availability of funds.

Hutch also pointed out that Essar was offered the opportunity to match Vodafone's bid - which it then turned down. Now Hutch says only two sets of approvals hold back the deal with Vodafone - shareholders approval and regulatory clearances. That is expected to take at the most 4 months. As for the matter of BPL's Mumbai circle - Hutch says it has nothing more to do with it as it has sold its stake in Hutch Essar.