Vodafone announced an agreement to buy another 33 percent of its Indian mobile operator Vodafone Essar. Its local partner Essar Group exercised a put option to sell a 22 percent stake to Vodafone. Vodafone then exercised its own call option over the remaining 11 percent in Vodafone Essar held by Essar. Vodafone said the transaction will cost a total USD 5 billion cash, an amount already included in its net debt under the options agreement. The deal is expected to close by November. The takeover will increase Vodafone's stake to 75 percent, just ahead of the maximum foreign shareholding of 74 percent under Indian law. Vodafone bought the initial stake in 2007 from Hutchison Whampoa and is still involved in a legal dispute with Indian authorities over alleged tax due on the purchase.
