Vodafone eyes Hutchison India

Mobile phone giant Vodafone Group is considering buying a controlling interest in India's Hutchison Essar.

Mobile phone giant Vodafone Group is considering buying a controlling interest in India's Hutchison Essar.

Vodafone said today the process was at an early stage, but its board believed the mobile market in India has great potential.

A move for Hutchison Essar would be consistent with its strategy of seeking selective acquisitions in developing markets, it said.

Vodafone's move raises the prospect of a $13-billion-plus bid battle with Reliance Communications for the operator.

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Foreign investors are limited to owning 74 per cent of Indian mobile operators.