Amazon, Verizon may invest over $4 billion in India's Vodafone Idea

BENGALURU - U.S. wireless carrier Verizon Communications Inc and Amazon.com Inc may invest more than $ 4 billion in a stake in India's Vodafone Idea Ltd., sending shares in the struggling Indian telecom firm up 10%, the Mint newspaper reported on Thursday.

The stake sale talks with Vodafone Idea had been temporarily paused pending the outcome of the court hearing in India, which has created uncertainty and could have threatened the survival of Vodafone Idea, Mint said, citing two unnamed people aware of the negotiations. 

But Amazon and Verizon are set to resume discussions after a Supreme Court ruling on Tuesday that gave mobile phone companies 10 years to settle government dues.

Vodafone Idea News

Vodafone Idea did not immediately respond to Reuters' request for comment. Amazon and Verizon did not respond to emails seeking comment outside regular U.S. business hours.

Vodafone Idea, a joint venture between Britain's Vodafone Group Plc and  India's Idea Cellular - had previously said that its ability to continue as a going concern depended on the positive outcome of the audience. 

It has paid the Indian government 78.5 billion rupees ($1.1 billion) in telecom dues, according to regulatory filings, but still owes another 500 billion rupees ($ 6.8 billion).

Shares in Vodafone Idea, which closed 13% lower after Tuesday's court ruling, rose 8% at 10.70 rupees on the NSE index by 0405 GMT.

($1 = 73.1900 Indian rupees)

Also Read: Twitter confirms the account of PM Narendra Modi's personal website hacked

 

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