Decision on Vodafone's purchase of Hutch delayed
Afp, New Delhi
India has delayed the approval of British telecoms giant Vodafone's multi-billion-dollar deal to buy Hutchison Essar while it decides whether the Indian cellular company's shareholding structure meets foreign investment rules. The announcement came after a meeting of the Foreign Investment Promotion Board which was examining if the shareholding structure breached regulations allowing foreign ownership of up to 74 percent in a domestic telecom firm. "I have sought more comments from the companies. They have agreed to give us more details. The decision has been deferred," Finance Secretary Ashok Jha told reporters late on Thursday. He gave no time frame for a decision. Last month, Vodafone agreed to buy Hong Kong-based Hutchison Telecommunications International Ltd's (HTIL) controlling interest in India's fourth-largest cellular player Hutchison Essar for 11.1 billion dollars.
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