Reliance keen on Hutchison India phone assets-reports

India's Anil Ambani group is teaming up with U.S. private equity funds to bid for the Indian mobile phone operations of Hutchison Telecommunications International, in a deal valued at more than $14 billion, newspapers said on Wednesday.

Ambani, who controls Reliance Communications Ltd., had previously held talks with Carlyle [CYL.UL] and Blackstone [BG.UL], and is now in discussions to include Texas Pacific Group [TPG.UL], the Financial Times said.

A bid for the Indian assets of Hutchison Essar, which is 67 percent-owned by Hong Kong tycoon Li Ka-shing's Hutchison International, could be worth more than $14 billion, the newspaper said, without identifying its sources. CLSA said in a research note earlier this week it estimated Hutchison Essar at an equity value of $14.4 billion.

India's Economic Times newspaper said on Wednesday Reliance is in talks with Kohlberg Kravis Roberts & Co. [KKR.UL] to form a partnership along with Texas Pacific Group and Blackstone.

"It is very preliminary as of now," a person familiar with the talks told Economic Times.

A spokesman for Reliance Communications did not immediately comment.

A successful bid by Reliance, India's second-biggest mobile services firm, would boost its GSM business, which lags its CDMA operations, catapult it to number one position in India and give it dominance in the lucrative Mumbai market.

Reliance also competes with leader Bharti Airtel Ltd. and state-owned Bharat Sanchar Nigam Ltd. Hutchison Essar is the fourth-ranked mobile services provider.

Hutchison Whampoa in November scrapped plans to list the Indian unit after disagreements with Essar over a proposed merger of another mobile operator purchased by Hutchison Essar.

The Economic Times also said Texas Pacific, along with Malaysia's Maxis Communications, had recently made a bid for Hutchison-Essar, but was turned down.

India is the world's fastest growing wireless services market, thanks to cheap call rates and low penetration of mobile facilities. India's mobile user base has topped 136 million. (Additional reporting by Asia Desk)