US wireless carrier Verizon Communications Inc and Amazon.com Inc may invest more than $4 billion for a stake in India’s Vodafone Idea Ltd, the Mint newspaper reported on Thursday, sending shares in the struggling Indian telecom firm up 10 per cent.
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, Mint reported, citing two unnamed people aware of the negotiations.
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 7,850 crore ($1.1 billion) in telecoms dues, according to regulatory filings, but still owes roughly Rs 50,000 crore ($6.8 billion) more.
Shares in Vodafone Idea, which ended 13 per cent lower after Tuesday’s court ruling, were up 8 per cent at Rs 10.70 on the NSE index by 0405 GMT.