The strained relationship between Vodafone and Indian partner Essar appeared set for new lows on Friday after Indian media said Essar wanted more money to quit their joint venture. Vodafone announced a deal last month to pay a predetermined price of $5 billion to buy Essar out of Vodafone Essar to give it direct ownership of 75 percent of India's third-biggest operator and bring an end to their fractious relationship.
Essar, which clashed openly with Vodafone during their partnership, declined to comment at the time, and on Friday three Indian newspapers cited sources as saying the Indian group might ask for more money or seek some form of arbitration. Citing people familiar with the development, the Economic Times said Essar wanted $600 million-$700 million more from Vodafone to sell its 33 percent holding.
Last month's agreement came about after Essar exercised its put option over 22 percent of the stake, allowing Vodafone to exercise its call option over the remaining 11 percent. However, the Times of India said Essar was not willing to readily give up the 11 percent.
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