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Mumbai: The race for acquiring mobile service provider Hutch Essar hots up with Reliance Communications, backed by US equity funds, and Egyptian telecom giant Orascom as well as Malaysia''s Maxis, joining the fray. Hutch Essar, the country''s third largest mobile service provider, is understood to be valued at $13-14 billion and a call could be taken in less than a month, banking sources said. Anil Ambani group firm Reliance Communication (RComm) is believed to have tied up funds for its bid to acquire Hutch-Essar with global equity players. UBS is advising RComm in raising debt and resources, investment banking sources said, adding that RelComm may raise an additional $4-5 billion from the market if needed. Sources said RComm is aiming at a minimum 80 per cent stake in Hutch-Essar, which it is seeking to acquire along with four global private equity players. RComm has evinced interest in acquiring the entire joint venture and not merely 67% stake held by Hutchison Telecom International (HTIL). In other words, the success would hinge on Indian promoter Essar''s consent to sell its 33% share. RComm has already concluded borrowings of $1 billion from the international market. The company now has cash reserves of overif needed $1.7 billion. It has also opened talks with four global private equity funds - Blackstone, Texas Pacific Group, Carlyle and Kohlberg Kravis Robert and Co (KKR) - to make a bid for Hutch-Essar. Hutchison Telecom International Ltd and its Indian joint venture partner Essar have declined to comment on ''speculations".
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