New Delhi: Vodafone CEO Arun Sarin not only delivered roses to the Ruias on the Valentine's Day, he landed right at their doors on Thursday in his efforts to woo the Essar Group to ensure smooth sailing of mobile venture Hutch-Essar, where the UK company is acquiring the majority stake.
After spending a hectic day in New Delhi, Sarin rushed to Mumbai early on Thursday to hold parleys with the Ruias amid reports that Essar was peeved by Vodafone's announcement on network sharing with rival Bharti Airtel without consulting the group. The Ruias hold a 33 per cent stake in Hutch-Essar.
The Indian partner even threatened legal action against the British telecom major.
Sarin, however, played down the threat, attributing it to a misunderstanding. "The announcements were made that we have won the auction, and that was the time when we brought this MoU out.
An MoU is simply an intent and we will convert this into an agreement in the coming months and the Ruias, who I very much hope will be our partners, will have the full chance to vet this agreement," he said on Wednesday.
"It is our sincere desire that Ruias continue. It is my first, second and third preference to have them as our partners," Sarin said ahead of the meeting on Wednesday.
On Thursday, Sarin along with his top lieutenants from Vodafone met Essar Chairman Shashi Ruia, Vice Chairman Ravi Ruia, Essar Group Directors Prashant and Anshuman at the Ruia residence in Mumbai.
Sarin's meeting with the Ruias assumes significance given Vodafone's offer to buy out Essar from the venture at the same terms given for acquiring Hutchison Telecom's 67 per cent stake. The Vodafone chief has, however, ruled out paying a premium to pick the stake of Ruias and that he would respect their decision if they want to concentrate on their other businesses - oil refining, steel and shipping.
He has also said that it was his company's view that Essar does not have the Right of First Refusal in Hutch-Essar. "It is our opinion and our lawyers' opinion," he said. On ignoring Essar in decision-making process, he said the Indian partner would be consulted as a 33 per cent stakeholder should be.
(With PTI inputs)
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