According to a report in the Hindustan Times, Hong Kong-based Hutchison may sell its stake in Hutchison Essar Ltd. through an open auction with a minimum reserve price of around $14 billion.

The report says the auction would be similar to that used for the sale of UK-based steel maker Corus.The fixing of the minimum reserve price would help weed out bidders who are not serious about the acquisition.

The UK-based Vodafone Group Plc, Reliance Communications Ltd., Hutchison's JV partner the Essar Group, which owns the remaining 33-per cent stake, and Hinduja group are in the fray against each other to buy Hutchison's 67-per cent stake in Hutchison-Essar.

Vodafone and Reliance Communications are regarded as front-runners for Hutchison Telecom's stake in Hutchison Essar.

Hutchison Whampoa's valuation of $14 billion for its 67-per cent stake in Hutch-Essar, values the company at approximately $20 billion.

Hutchison Essar is India's fourth-largest mobile phone service provider and the paper said its enterprise value would be around $18-$20 billion including debt of $1 billion.

Hutchison Whampoa's Indian telecom arm, Hutchison Telecommunication International Ltd, is expected to hold an extraordinary general meeting later this month February, after which the bids will be submitted and HTIL in consultation with the bidders will decide the rules for open auction the report states.