US wireless provider Verizon Communications Inc and Amazon.com Inc can invest more than $ 4 billion in a stake in India’s Vodafone Idea Ltd, Peppermint newspaper reported Thursday, sending shares in the struggling Indian telecoms company up 10 percent.
Vodafone Idea stake sale talks had been halted pending the outcome of a court hearing in India, creating uncertainty and could have threatened the survival of Vodafone Idea, Mint reported, citing two anonymous people familiar with the talks.
But Amazon and Verizon are ready to resume discussions after a Supreme Court ruling on Tuesday that gave mobile operators 10 years to settle government fees.
Vodafone Idea did not immediately respond to Reuters’ request for comment. Amazon and Verizon did not return emails seeking comment outside of regular US business hours.
Vodafone Idea, a joint venture between Great Britain’s Vodafone Group Plc and India’s heavily indebted Idea Cellular, had previously said that its ability to continue as a going concern was based on a positive audience result.
It has paid the Indian government Rs 7,850 crore ($ 1.1 billion) in telecom fees, according to regulatory documents, but still owes roughly Rs 50,000 crore ($ 6.8 billion) more.
Vodafone Idea shares, which closed 13 percent lower after Tuesday’s court ruling, rose 8 percent to Rs 10.70 on the NSE index at 0405 GMT.
.
