Idea may sell stake, in discussions with international telcos

Battle over Spice acquisition continues pending DoT approval and high court stay

PTI | April 5, 2011



Even as the battle over Spice acquisition continues, the Aditya Birla group firm Idea Cellular is believed to be in talks with global telecom operators to sell its stake in the company.

According to reports, the group is scouting for buyers for the telecom company and has held discussions with several international players.

When contacted, Idea Cellular spokesperson declined to comment on the issue, saying "the company does not respond to market speculations."

The Delhi High Court has stayed the merger of Idea and Spice Telecom on a complaint filed by the Department of Telecom that the deal was in violation of the licensing rules.

The merger deal was signed between the two firms in 2008 with Idea picking up 41.09 per cent stake in Spice for about Rs 2,700 crore.

The DoT has not approved the deal because the merged entity, effectively, ended up having two licences in all the six circles, including Punjab and Kerala, which is against the merger and acquisition rules.

Aditya Birla Group holds about 47 per cent stake in Idea Cellular. Shares of Idea Cellular closed at Rs 67.45 a piece, down 0.22 per cent from its previous close on the Bombay Stock Exchange.
 

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