Bharti set to unravel ties with Vodafone

Bharti Airtel will start talks for "disengagement" from its partner Vodafone once the UK company decides on its future course of action in India.

Vodafone "" which has a 10 per cent equity stake in Bharti Airtel, bought over a year ago "" announced a few days back that it would pitch for acquiring a majority stake in Hutchison-Essar Ltd, the fourth largest mobile player in the country.

Sunil Mittal, chairman of the Bharti group, told Business Standard: "We are talking to Vodafone all the time; they have aspirations in India. Once Vodafone takes a decision, we will start discussions on disengagement, and I can tell you that it will be done in a congenial atmosphere."

However, he declined comment on whether the group would buy the Vodafone stake.

He also said that his group was ready to compete with the global giant in the Indian market. "Vodafone is a great company, but if we have to compete with them, we will do so."

Mittal clarified that he was not interested in bidding for Hutchison's stake, given its price. While denying that any offer had been made by Vodafone to jointly bid for the stake, he said, "The question whether Bharti should acquire Hutch has come up before the board many times, but we have made it clear that we are not keen."

Clearing the air on whether Vodafone wanted to increase its stake in Bharti Airtel, he said it was evident to Vodafone from the beginning that the Mittals would not dilute their stake further.

"They chose to take a 10 per cent stake and it was clear that the other stake lay in the public market which we would not disturb, and that Bharti would not sell more because we needed an Indian partner and had no intention to dilute our stake."

He added, "If Vodafone had any desire to buy the Singtel stake, it was never communicated to us. Vodafone wanted to test developing markets. In the Bharti system, there is zero stress on this issue."

Mittal added that the key to the sale of Hutchison's stake in Hutch-Essar lay with the Ruias, who were yet to make up their mind.

"If the Ruias have the intention of staying in, there is no question of any Indian company buying the stake," he felt.