Vodafone bags Hutch India

It beat off bids from rivals Reliance and the Hinduja group. It remains to be seen how Indian company, Essar, which own the rest of the operator (33 per cent) will react.

Vodafone has reportedly signed another network sharing deal (following a similar agreement with Orange in the UK) with the Indian operator, Bharti Telecom.

That wasn't too difficult a deal to cut since Vodafone already owns a 10 per cent stake in Bharti. It's not clear whether Vodafone will have to sell that stake now it has a majority holding in Hutch.

Having had a rather acrimonious battle with Vodafone over control of Hutch, it will be interesting to see how Essar will respond to Vodafone's offer of a continuing partnership. Since the Hinduja group expressed interest in Hutch, maybe the company will sell out to them.

Vodafone's Arun Sarin will at least be pleased that his strategy of moving into emerging markets is on course. Even if analysts suggest it has overpaid for its stake. µ