Verizon Rumored To Be Interested In Hutchison Essar

MUMBAI -(Dow Jones)- US-based telecom company Verizon Communications is rumored to be interested in buying a stake in Indian mobile phone operator Hutchison Essar, the Press Trust of India reported Wednesday.

A Verizon spokesperson said in the report that the company doesn't comment on speculation.

The report cited unnamed industry sources as saying the move could be strategically important for Verizon as the U.S. market was nearing saturation, while the Indian market offers great growth opportunities.

Hutchison Essar is India's fourth-largest mobile service provider and is 67%-owned by Hong Kong's Hutchison Telecommunications International and 33%-owned by India's Essar Group.

The other contenders for Hutchison Essar include UK-based Vodafone Group, which has said it is considering taking a controlling interest in Hutchison Essar, and India's second-largest mobile phone operator Reliance Communications.

The Essar group is also interested in buying its partner's stake, a person familiar with the matter told Dow Jones Newswires earlier.

-By Mumbai Bureau; Dow Jones Newswires; 91-22-22884212; djn.in@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 3rd January 2007