why doesnt mittal  want to sell any further stake in bharti to vodafone when voda is eager to buy is he telling them to buy in the open mkt or does he not want to dilute further

Agree.Mittal sold before this @ Rs230(around that ) and his notional loss is in Tens of thousands of crores . I think he will sell at 1500 /share now

Edited by vip1 - 14/Dec/2006 at 3:19pm

Hi,
There have been discussions going on both in Bharti and Relcome to demerge their tower business. Reliance COm has already called for a demerger meeting on 27th Jan while Bharti has also made its intent clear as reported in the ET today. Bharti is the largest player with highest number of towers.It may be demerged in 4 companies and then strategic stake can be offered to other players. this will free up cash and remove the personnel, capital eqpt etc from the balance sheet of bharti..May be valued at $4 billion as per the article.

against bharti mcap of 25 billion USD, this is around 4 billion only..WOuld this make sense and create some positive impact for shareholders?

In Fy 08 Bharti should do an EPS of close to Rs 30 per share. It has always traded at 30 times and above the current year earnings. I think that it makes a very good case for investment because the stock could go upto Rs 900 over the next 12 months implying a return of about 50% for the investors. ALso this is a large cap with very good visibility. FUrthermore there could be a trigger because of the Hutch deal but I am not baing any of the arguments on that basis.