Hutch moves High court On BPL Merger Issue

Cellular provider Hutch has moved Bombay High Court against the termination issued by its joint venture partner Essar over the merger with BPL Mobile (Mumbai circle) terming it as ‘unlawful’.

Following the termination notice, Essar had decided not to sell the BPL cellular business in Mumbai, the most lucrative metro circle, to Hutch Essar, a company in which it holds about 33 per cent stake.

The latest turn of events has contributed in a big way to the already sour relationship between both the partners over Hutchison's decision to bring Egyptian mobile operator ORASCOM into the Board of Hutchison Essar after a global transaction with that company.

Essar had bought BPL Mobile at an enterprise value of $1.1 billion last year. The deal was later extended to Hutchison-Essar for the eventual merger into the JV.