Vodafone Idea Denies Acquisition Talks With Verizon, Amazon Or Starlink
Vodafone Idea denied any ongoing discussions with American telecom giant Verizon, e-commerce titan Amazon or Elon Musk's Starlink regarding a potential acquisition. The telecom company issued a statement refuting the claims that had sent its stock price on a rollercoaster ride, surging by around 20 per cent over the past two weeks.
Vodafone Idea is jointly promoted by UK’s Vodafone Group and Aditya Birla Group, with both entities collectively holding a controlling stake of 50.1 per cent. The Indian government also plays a significant role as the largest shareholder, maintaining a 33.1 per cent stake following its conversion of the telco's accrued interest into equity in February 2023.
The catalyst for the recent surge in Vodafone Idea’s stock price was a news report speculating that one of the three American giants—Verizon, Amazon, or Starlink—might be in the running to acquire the beleaguered telecom company. This prompted market experts to project that the share price could soar to Rs 25 if the government were to agree to sell its stake in the company to one of these US-based entities.
As the news gained traction, Vodafone Idea's share price closed at Rs 11.73 at the end of trading on a Friday and opened at Rs 12.38 the following Monday. However, in response to the media frenzy, the company released an official statement asserting that it is not engaged in any discussions with the aforementioned US companies regarding an acquisition.
