Rel to raise $1bn, bid for Hutch-Essar

Mumbai: The Board of Reliance Communications, a serious contender for Hutch-Essar is likely to bid for the telecom giant for a whooping one billion US dollars.

According to company sources, Reliance communications authorised its Chairman Anil Ambani to go ahead with the acquisition and raise long-term resources for the deal.

Ambani was given the ‘go ahead’ on Wednesday to take all necessary steps and raise long term resources in the form of External Commercial Borrowings (ECBs), said the company in a statement after its Board meeting.

The Board of Directors also approved the issue of Foreign Currency Convertible Bonds in overseas markets worth up to one billion dollars.

The company however, noted that there was no certainty either on completion or timing of the proposal related to Hutch Essar acquisition.