The Hindu Business Line : Hutch-Essar sell-off to see a buzz of activity today

The other potential bidder Reliance Communications has a board meeting scheduled for Wednesday. In addition to all this, the Essars are set to start their due-diligence of the company "any time from now" said sources close to the developments.

Reliance Communications had earlier said that its board meeting would decide on raising funds through issue of foreign currency convertible bonds or other instruments.

It did not elaborate on the purpose for which the funds would be raised, but sources close to the company said this must be seen in the context of the announcement made by Chairman, Mr Anil Ambani, that his company would bid for Hutch-Essar.

Mr Ambani had said that his company had the backing of a majority of ten top international banks, financial institutions and private equity investors.

The Essars, who already own 33 per cent stake in the company, are readying their bankers to start due-diligence very soon, said sources.

How much Vodafone, the first off the block to do due-diligence of Hutch-Essar, will offer for Essar will be eagerly awaited by the other contenders, said industry watchers.

The British company has committed itself to stay within the bounds of its acquisition norms with respect to how much it will pay for Hutch-Essar. Once other competitors get an inkling of what Vodafone is willing to pay, they will naturally attempt to better this offer, said sources.

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