Vodafone Idea Could Get $4 Billion Investment From Amazon, Verizon

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According to new reports, Verizon and Amazon may look to invest more than $4 billion (approximately Rs. 29,354 crores) for a stake in India’s Vodafone Idea. The news comes in the wake of the Supreme Court’s ruling that mobile carriers have to settle government dues within 10 years.

Vodafone Idea, a joint venture between Britain’s Vodafone and India’s Idea, owes Rs. 50,000 crores to the Indian government. While Vodafone Idea’s stake-sale talks had been paused pending the court ruling, Amazon and Verizon are set to resume those negotiations. After the news broke, shares in Vodafone Idea hit a more than one-year high before closing up 26.77 percent.

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Another report stated that Vodafone Idea could “take stock” of a sale of its optic fibre business at a board meeting scheduled to discuss fundraising plans. In fact, Canada’s Brookfield Asset Management and private equity group KKR are also contending for that business.

This piece of news gives Vodafone Idea, the third largest telecom firm by subscribers in the country, some respite. However, analysts are still wary, and have said that the loss-making company’s financial pressures could persist despite the interest from big companies in the fundraising process.