Vodafone seeks leading Indian cell company

MUMBAI, Dec. 28 (UPI) -- British cell phone operator Vodafone has submitted a bid of $17 billion to $18 billion for India's Hutchison Essar cell phone company.

The bid was submitted to majority shareholder Hutchison Telecom, owned by Hong Kong conglomerate Hutchison Whampoa, the Financial Times reported Thursday.

Extra costs associated with the deal would add at least another $2 billion to the price tag as Vodafone seeks expansion in the world's fastest-growing mobile market.

The talks could be derailed by India's Essar, which owns a 33-percent share in the group, after it offered $11 billion for the remaining stake, the newspaper said.

No. 2 Indian wireless operator Reliance Communications is also a possible player in the bid for Hutchison Essar, the newspaper said.

It has lined up financing from HSBC, JPMorgan and Barclays and is in talks with private equity groups Blackstone, KKR, Carlyle and Apax for a potential bid, the Financial Times said.