Ethical and Governance Issues in Vodofone-Hutch Deal
Posted: 18 Sep 2009
Date Written: September 16, 2009
Abstract
British telecom giant Vodafone acquired a majority stake in Hutch-Essar. The enterprise valuation of Hutch-Essar is $18.8 billion in which the controlling stake of 67% valued at $11.8billion.vodafone paid $10.9 billion as against $11.8 billion announced earlier. This business purchase deal includes the payments to Essar Group as well. The completed deal positions Vodafone as a leading operator in the fast growing Indian mobile market. This paper looks closely at the ethical and governance issues across the deal and the cost benefits to the corporates involved.
Keywords: Business Ethics, Corporate Governance
JEL Classification: G32, G34
Suggested Citation: Suggested Citation