for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Money News

India's Vodafone Idea says board has no proposal from Amazon, Verizon

BENGALURU (Reuters) - Vodafone Idea said on Thursday its board had no investment proposal to consider from U.S. wireless carrier Verizon Communications Inc or Amazon.com Inc.

Slideshow ( 3 images )

The Indian mobile firm added, however, that it constantly evaluates opportunities for enhancing stakeholders’ value.

Vodafone Idea’s statement followed a report in local newspaper the Mint that Verizon and Amazon may invest more than $4 billion for a stake in heavily indebted Vodafone Idea.

The telecoms carrier’s shares rose as much as 30% following the report.

Vodafone Idea won something of a reprieve this week as India’s top court gave mobile carriers 10 years to settle government dues, but the company’s longer-term problems are not over.

Vodafone Idea, a joint venture between Britain’s Vodafone Group and India’s Idea Cellular, still owes roughly $6.8 billion to the Indian government.

Vodafone Idea's stake-sale talks had been paused pending the court ruling, but Amazon and Verizon are now set to resume them, Mint reported, citing two people aware of the negotiations. (bit.ly/356USDD)

Amazon and Verizon did not respond to Reuters requests for comment.

Shares in Vodafone Idea hit a more than one-year high before closing up 26.77% amid a flurry of news about its fundraising plans.

CNBC-TV18 reported Vodafone Idea could "take stock" of a sale of its optic fibre business at a Friday board meeting scheduled to discuss fundraising plans. (bit.ly/352vP4A)

Canada’s Brookfield Asset Management Inc and private equity group KKR & Co Inc were contenders for the business, CNBC-TV18 said.

Vodafone Idea was planning to raise about $1.5 billion and was working with advisers as it seeks investors, Bloomberg News reported.

Vodafone Idea and KKR declined to comment, while a representative for Brookfield did not immediately respond to a request for comment.

Reporting by Sachin Ravikumar and Sethuraman N.R.; Editing by Subhranshu Sahu, Shounak Dasgupta and Tom Brown

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up