Ambani Remains Elusive on Hutch Deal

by CXOtoday Staff    Dec 28, 2006

Reliance Anil Dhirubhai Ambani Group played down speculation over its offer to Whompoa Hutchission and stated that it is just one of the components in its overall growth strategy.

The company however, maintained that Hutch is one of the potential combination aimed at creating compelling value for all the share holders.

Anil Ambani, chairman, Reliance Dhirubhai Ambani Group, said, “Consolidation unlocks high synergies and creates maximum value for all share holders.”

The company has received financial support from leading banks and financial institutions. “We have committed support from top 10 equity funds. The banks and the institutes are willing to pay us more than our requirements. However, we will follow a conservative line of approach. I will not spell out figures because of obvious reasons.”

Ambani informed that the Essar team would first have to sort out the issue within the organization, before the combine decides on future course of action.

He stated,” Reliance continues to invest in organic and inorganic growth avenues.”

When asked about how this acquisition would enhance the Reliance, Ambani replied, “A potential combination of this nature can create a compelling value of Reliance communications. This is a strong endorsement for the growth in the country’s telecom sector.”

“The corner stone is providing sustainable value creation for all stakeholders of Reliance communication. The board would discuss various opportunities before taking a decision,” he added.