Even as Vodafone and Essar have initiated “due diligence” initiatives, the board meeting of Anil Ambani group firm Reliance Communications Ltd (RCOM) is likely to finalise a strategy, including financial details, for its intended bid to acquire Hutchison Essar Ltd (HEL) on Wednesday.The board of RCOM is scheduled to meet here to consider among other things raising resources from the international market through issue of securities such as FCCBs and ECBs. Even though the issue of acquiring Hutch Essar was not on the agenda notified to the bourses last week, sources said the company would chalk out a roadmap for the proposed takeover. This would include scrutinising the books and putting in a formal bid for HEL.While there was speculation that Reliance could start due diligence in next two-three days, there was no confirmation from company officials. The board meeting comes at a time when RCOM’s rival Vodafone has already started due diligence of Hutch Essar and its CEO Arun Sarin is slated to hold talks with government as well as company officials on Wednesday. Besides RCOM and Vodafone, Essar and Hinduja Group have evinced interest in buying out Hong Kong-based Hutchison Telecom’s 67 per cent stake in the joint venture company.RCOM, the country’s second-largest private mobile player, will have to acquire the entire HEL — shares of both Hutchison Telecom and Essar — as government regulations do not permit an existing player to have more than 10 per cent stake in two separate cellular companies operating in the same circle. In the event of Hutchison Telecom getting a top bid from RCOM, Essar would be given an opportunity to match the offer as it has the right of first refusal in the joint venture pact.
