Vodafone Idea, one of India’s leading telecom operators, has denied reports that it is in talks with Verizon, Amazon, or Starlink for a potential acquisition.
The news comes after an online portal published a report claiming that Verizon, Amazon, and Starlink are in the race to acquire the cash-strapped telco. The report also suggested that market experts expect one of the three US companies to pick up a controlling stake in the Indian telco. However, Vodafone Idea has denied these claims and stated that the news item is incorrect.
Vodafone Idea is promoted by UK’s Vodafone Group and Indian conglomerate Aditya Birla Group, both together holding 50.1% stake. The government is the company’s largest shareholder with a 33.1% stake after it converted the telco’s accrued interest towards adjusted gross revenue (AGR) arrears into equity in February 2023.
Vodafone Idea’s denial of acquisition talks with Verizon, Amazon, or Starlink comes as a relief to its investors who were concerned about the company’s future prospects.
The company has been struggling with mounting debt and intense competition from rivals such as Reliance Jio and Bharti Airtel. However, Vodafone Idea’s recent stock rally indicates that investors are optimistic about its future prospects.