I wonder, whether all these companies in fray for acquiring Hutch shall have strong interets to buy it, in case the government taxes are increased without allowing for increase in mobile rates or the government compels all such companies to reduce their charges and work on 30% profits basis..?
I would presume, the biggest benefitiary in this deal would any how be reliance, whether or not they bag the deal; if they do, it would do serious benefits to their business; even otherwise would raise the market capitalization of the firm multifold in the league of $50-70 Billion,
Beware of prices paid for equisition? Such high prices for stake in telecome sector prooves my point that Indians are bleeding and making rich richer by all means.Hutchs sale price reflects that margin of profits earned by companies are very very high but state is not paid its due taxation.
RE:Hutch take over bids
by vikas bhansali on Jan 11, 2007 04:51 AM Permalink
this seems like a socialist comment on a economic situation.. the market price reflects the growing rpu in the telecom market; also the fact that Indian corporate valuations are closing Gap with their global counterparts; check Vodafone, 2005-06 net losses of 19 billion dollar, yet market cap of 275 billion and pe of 30, while hutch essar still talks of market cap of 20 bn with almost half the subscriber levels... power of globalization would bridge that gap i am sure
It's better for Reliance to acquire it so that they get an already existing good market share of HUTCH since Reliance has GSM rollout plans. It will also save it from initail infrastructure cost and pay back period will be less.
RE:Good
by ashish agrawal on Jan 10, 2007 08:41 PM Permalink
2020 is too early to say...But I think we need more better road and highways then the Telecom or It now to become superpower...
If reliance gets an opportunity ,there may be possible that problems between GSM and CDMA connections may be sorted out.So in the interest of end users ,hope relinace bags it
Glad that the competition kicked-off in a healthy manner. For reasons, I strongly feel Vodafone should be given a fair chance in this deal. It's big-time entry into Indian Markets will be helpful to the consumers in a huge way.
