U.S./Mumbai: American multinational telecommunications conglomerate Verizon Communications Inc and technology company Amazon are both planning to 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 percent.
Vodafone’s stake-sale deal talks had been paused owing to a pending court hearing in India, which created uncertainty and could have threatened Vodafone’s Idea’s survival, Mint reported, citing two unnamed people aware of the developments.
Though Amazon and Verizon are planning to go ahead with the negotiations following a Supreme Court ruling on Tuesday which gave telecom companies 10 years to settle their government dues.
Vodafone Idea did not immediately comment on the above developments nor did Amazon and Verizon respond to the emails seeking comment outside regular U.S. business hours.
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.