Vodafone CEO open to resolving tax battle outside of arbitration

25 Sep 2014

Vodafone Group’s CEO Vittorio Colao has not ruled out the possibility of settling the company’s long-standing tax dispute with the Indian government outside of the arbitration process which has just begun. The Business Standard quotes the official as saying that he has faith in the process of settling the INR79 billion (USD1.3 billion) fight – relating to the group’s 2007 purchase of its stake in Vodafone India (then Hutchison Essar) – through arbitration but ‘nothing outside that is ruled out’. The CEO also commented that the group was open to listing its Indian subsidiary in India ‘at the right time and with the right conditions.’ Colao referred to the uncertainty regarding spectrum renewal as a major barrier to listing, as such doubts would impact the company’s valuation. Echoing earlier comments made by Vodafone representatives, the CEO said that the Indian market is ripe for consolidation, although merger and acquisition rules need to be improved for this transition to take place

India, Vodafone Group, Vodafone India