Telecom Italia Denies Bidding for Indian Mobile Operator Stake

Telecom Italia has denied a news report that it is close to investing US$2 billion to take a 49% stake in India's Unitech, which holds a nationwide telecoms license covering all 22 of the license circles. The company has already received radio spectrum in six circles and is aiming to launch services next April.

The Economic Times had earlier reported that the two firms are close to reaching an agreement whereby UnitechÃ's telecom business will be transferred to a new company in which Telecom Italia will invest $2 billion for 49% stake. Unitech would contribute its licenses as equity.

However, a Telecom Italia spokesman said that "The story is baseless".

Telecom Italia is bogged down in a considerable debt mountain, and was recently reported to be seeking a large capital injection from a sovereign wealth fund.

NorwayÃ's Telenor and Kuwait's Zain are also understood to be in talks to take a stake in the Indian company - but are thought to be holding out for a majority stake.

On the web: Economic Times

 

Posted to the site on 18th September 2008