US wireless carrier Verizon Communications Inc and Amazon.com Inc may invest more than $4 billion for a stake in beleaguered Indian telecom firm Vodafone Idea Ltd, the media reported on Thursday, citing two unnamed people aware of the negotiations.
Bangalore:
The proposed investment plans of Verizon Communications Inc and Amazon.com Inc sent shares in the struggling Indian telecom firm up 10%.
Vodafone Idea’s stake-sale talks had been paused pending the outcome of a court hearing in India, which created uncertainty and could have threatened Vodafone Idea’s survival, it was reported, citing two unnamed people aware of the negotiations.
But Amazon and Verizon are set to resume discussions following a Supreme Court ruling on Tuesday which gave mobile carriers 10 years to settle government dues.
Vodafone Idea did not immediately respond to request for comment. Amazon and Verizon did not return emails seeking comment outside regular US business hours.
Heavily indebted Vodafone Idea - a joint venture between Britain’s Vodafone Group Plc and India’s Idea Cellular - had previously said its ability to continue as a going concern rested on a positive outcome of the hearing.
It has paid the Indian government Rs 78.5 billion ($1.1 billion) in telecoms dues, according to regulatory filings, but still owes roughly Rs 500 billion ($6.8 billion) more.