Feeds

Regulators probe Vodafone - Hutch Essar deal

Indian mobile operators for Indian people

Eight steps to building an HP BladeSystem

Indian industry watchdogs will investigate whether Vodafone's $11bn deal for mobile operator Hutch Essar violates laws designed to regulate foreign control.

The world's largest mobile operator agreed to buy a controlling holding in Hutch Essar in mid-February. The 67 per cent stake comprised Hutchison Telecommunications' 54 per cent, and options the Hong Kong-based group held over a further 15 per cent of Hutch Essar, which was owned by two Indian individuals.

The remaining 33 per cent is held by Indian investment group Essar. Two thirds of Essar is controlled offshore in a tax workaround, meaning the carve-up of Hutch Essar could breach a cap on foreign investments set at 74 per cent.

After a complaint from the reserve bank of India, the Foreign Investment Promotion Board will now review whether the complex arrangements are within the law.

Hutchison Telecommunications told the Financial Times yesterday that it had complied with regulations in making the deal with Vodafone. Earlier this month Hutchison Telecommunications announced it would pay Essar $415m to drop a mooted legal challenge to the deal. Essar had claimed it had first refusal on any sale of Hutch Essar. ®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Bose says today IS F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.