Voda-Hutch: It Ain’t Over Till…

… who decides? Rather unexpectedly, the Voda-Hutch deal has come across another hurdle. Based on a petition by Telecom Watchdog, a Non Governmental Organization , the Delhi High Court has issued a notice to the government, Hutchison Telecom, Hutch-Essar and minority shareholders Asim Ghosh and Analjit Singh, reports the Hindustan Times.

The allegation remains the same: that the deal is a breach of Foreign Direct Investment (FDI) norms that restrict foreign holdings in telecom to 74 percent. The court had earlier deferred the issue to the Foreign Investment Promotion Board (FIPB). What I don’t get, is that if Asim Ghosh, IDFC and Analjit Singh may only sell their minority stake to Indian residents – what’s the issue?

Meanwhile, Voda has announced plans to sell 5.6 percent stake in Bharti Airtel back to the company by November 2008, reducing its holdings to an indirect stake of 4.39 percent. Voda expects $1.6 billion in cash for this deal. More at Times of India

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