The Hindu Business Line : Essar gets fund pledge worth $24 b for Hutch-Essar buy

The Essar Group has received `in-principle' financial support from leading banks and financial institutions for up to $24 billion for a possible buyout of Hutch-Essar.

Sources close to the Group said that the Essars now have the "comfort" of support from entities that include Citibank, Morgan Stanley and Standard Chartered. The Essar Group owns 33 per cent stake in Hutch-Essar, with Hutchison Telecom International owning the remaining stake, part directly and part indirectly.

The amount which the banks are willing to commit would be far in excess of Essar's requirements for buying out Hutch's 67 per cent stake, said the sources.

The Essars would compete with the UK-based Vodafone and Reliance Communications, apart from other suitors such as Maxis Communications, for the Hutch stake. Vodafone and Reliance have made public their interest in acquiring the company, India's fourth largest wireless operator.

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