Vodafone slugs it out at Madras HC on Essar's VEL stake

UK-based Vodafone may be parting ways with Indian partner Essar, but they are continuing to fight like only partners can! CNBC-TV18's Swathi Narayanan reports in detail.

The two sides faced off in the Madras High Court on Friday over Essar's 11% onshore stake in the Vodafone Essar Limited, with Vodafone wanting to enforce its call option right to buy the 11% stake. It pleads for its call option on the 11% stake in VEL. The court, meanwhile, reserved its order on Vodafone's locus standi to object to the merger. Vodafone Group had, on Thursday, announced that the Essar Group had exercised its underwritten put option over 22% of Vodafone Essar Limited. "Following the exercise by the Essar Group of its put option, Vodafone has exercised its call option over the remaining 11% of VEL owned by the Essar Group, resulting in a total cash payment of USD 5 billion," Vodafone had said. Have you read: How does Analysys Mason view Essar's exit?