Telecom company Vodafone Idea (Vi) has denied reports that it is in discussions with Verizon, Amazon Or Starlink for a potential acquisition. Earlier a news report on an online portal had said that the three companies are in the race to bid for Vodafone Idea.
The telecom company's stock has rallied around 20 per cent in the past two weeks owing to a possible acquisition by these firms. However, the telco has categorically denied these claims, according to a report by ET.
“This is in relation to (a) News Item titled ”Vodafone Idea to be acquired by a US telecom giant Soon? Verizon, Amazon, or Starlink, in the race”, which is doing rounds in electronic and social media. We wish to submit that the said News Item is incorrect. The Company is not in any such discussion with any of the named parties,” Vodafone Idea said in a BSE filing.
Vi's stock has jumped 50% to Rs 11.73, between August 16, 2023 and September 15, 2023.
With a combined 50.1% interest, the UK's Vodafone Group and the Indian conglomerate Aditya Birla Group are the major stakeholders of Vodafone Idea. The government converted the telco's accrued interest against adjusted gross revenue (AGR) arrears into stock in February 2023, becoming the company's largest stakeholder with a 33.1% stake.
According to media sources, if the government decides to sell its investment in the company to one of the three US-based companies mentioned, the share price is projected to rise to Rs 25 in the near future.
On Monday, Vodafone Idea shares fell 4.70 per cent to Rs 11.15 on the National Stock Exchange (NSE).