Hutchison Whampoa sets floor price at $14 billion for its stake
27 Dec 2006
Hong Kong tycoon Li Ka Shing's Hutchison Whampoa today said that it would consider selling its 67-per cent shareholding in Hutchison Essar, held through its Hutchison Telecom International Ltd (HTIL), for only above $14 billion.
The statement was made by the spokesman to finance director Frank Sixt, on Wednesday.
The spokesman was confirming comments made by Sixt reported by the Financial Times on Wednesday, which cited him as saying that the group hasn't received ''anything that would rise to the level of being an offer capable of acceptance.''
The statement alos follows the offer by Mumbai-based Essar Group, which holds a 33-per cent stake in Hutchison Essar, to buy out Hutchison Whampoa''s stake in HTIL the company.
According to reports, Morgan Stanley and Bear Stearns, who met senior Hutchison officials in Hong Kong on Tuesday, had made the offer on behalf of the Ruia-owned Essar Group.
The spokesman also confirmed the newspaper's report that the group had dismissed a $13.5-billion offer made last week for the asset by Maxis Communications BHD and US private-equity company Texas Pacific Group.
Its Indian arm, Hutchison Telecom says it has been approached by various parties regarding a sale of its 67 percent stake in Essar although it said there was no guarantee that this would result in a deal. (See: HTIL continues to be wooed)
Those in the running include the offer from the UK-based Vodafone, which then attracted other bidders like Reliance Communications, Malaysia's Maxis and Egypt's Orascom Telecom.