Hutch Essar sellout – Update

December 14, 2006 · Filed Under Mobile, Telecom 

ET has reported that Anil Ambani is in talks with Kohlberg Kravis Roberts & Co (KKR) to make a joint bid for Hutchison Essar. Details unavailable. HTIL has rejeced a $13.5 billion joint bid by Texas Pacific and Maxis Telecom. Wait a minute, $13.5 Billion + Debt ? That’s insane valuations for Hutch Essar.

One of our readers commented that times have changed and Ambani might just opt to BUY rather than BUILD. Recall what the world’s richest man Bill Gates said, “If the folks next in line to you are deal makers, then you end up buying lot of companies. If the folks next in line to you are developers, you end up developing millions of lines of code”. Long term investors like Gates, Buffet etc always look to BUY businesses at fair valuations or at discounts but never pay an insane premium.

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One Response to “Hutch Essar sellout – Update”

  1. goBroadband » Blog Archive » MTN to takeover Reliance Communications in Entirety ? on May 28th, 2008 4:11 pm

    [...] class industries, however, Anil Ambani is always tilted towards a BUY instead of BUILD. [Recall Ambani’s unsuccessful bid for Hutchison [...]

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