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Hinduja TMT, a minority shareholder in Hutchison Essar, a leading Indian telco, is believed to be exiting the company pre-IPO. Hutchison Whampoa, a major shareholder in Hutch, is said to have offered to buy the Hinduja group’s 5.11 per cent stake Hutch for $400 million, reports The Economic Times. It has also offered a gain of up to $50 million upon listing of the Indian entity. A value of $400m for a 5 per cent stake would mean a valuation of $8 billion for Hutchison Essar.

However, the report says that the Hindujas are not willing to accept the offer as it stands. The Hindujas feel that the offer is less than the $11.3 billion valuation offered by Egyptian conglomerate Orascom. Meanwhile, Essar, the the major Indian shareholder in Hutch, is also believed to be interested in hiking the stake. They are also said to be talking to Hinduja TMT. [Via The Economic Times]