According to a report in today''s Financial Times, the board of Vodafone is meeting today to consider making a $13.5 billion-plus offer for Hutchison Essar, the fourth biggest mobile operator in India. Vodafone is the world''s leading mobile services operator in terms of revenue.

Meanwhile according to some reports, Ravi Ruia is in London amidst speculation to meet the Vodafone management to strike a deal. Ruia has been meeting financial investors to ascertain their interest in Hutch-Essar.

But it is not clear whether Essar intends to sell its stake or line up finances to buy out Hutchison''s stake in Hutchison Essar. In the event of Hutchison selling its stake, Essar would have the first right of refusal.

The paper also said that Vodafone''s move to acquire the 67-per cent shareholding of Hutchison Telecom International Ltd (HTIL) is likely to set-of a bidding war with Anil Ambani''s Reliance Communications, which has evinced interest in acquiring the entire joint venture and not merely 67-per cent stake held by Hutchison Telecom International (HTIL).

The Financial Times says Vodafone executives plan to table an offer in person on Friday to Canning Fok, managing director of Hutchison Whampoa, and Ravi Ruia, vice-chairman of Essar, who are both scheduled to be in London.

Hutchison and Essar have been involved in a dispute over a 20-per cent stake sale in HTIL to Egyptian telecom company Orascom, which gives Orascom a 10-per cent beneficial stake in Hutchison Essar. Essar had objected to this.

There were also differences between Hutchison and Essar over the merger of BPL Mobile with Hutch. The Essar Group acquired BPL Mobile and merged it with Hutch Essar to raise its stake in the latter to 33 per cent. Some differences over valuations and sorting out regulatory hurdles in the key Mumbai telecom circle are believed to have contributed to the dispute.

An acquisition in the world''s fastest growing market would - India - enable Vodafone to boost its sagging revenues from its European businesses. Vodafone''s CEO Arun Sarin had indicated an interest in selective acquisitions. In October alone there was an addition of 6.7-million subscribers taking the total to 136 million.

According to FDI restrictions in telecom, Vodafone would not be able to hold more than 74 per cent in Hutchison Essar. It would need to find an Indian company to take the remaining 26 per cent.

Sunil Mittal, chairman of Bharti Enterprises and founder of Bharti Airtel, the leading Indian mobile operator, is believed to have turned down Sarin''s offer of making a joint bid for Hutchison Essar.

Should Vodafone succeed in its bid for Hutchison Essar, it would have to divest the 10-per cent stake it had taken in Bharti earlier this year. Earlier in the week Vodafone had divested its 25-per cent stake in the Swiss telecom operator Swisscom Mobile for £1.8 billion.