DoCoMo to retain stake in Tata Teleservices

Dylan Bushell-Embling
telecomasia.net
Japan's NTT DoCoMo has reportedly decided to hold on to its 26% stake in Indian operator Tata Teleservices, sparing the cash-strapped company the need to buy back the shares.
 
NTT DoCoMo had the option to require Tata Group to buy out its stake for about 65 billion rupees ($1.08 billion) – around half the amount it paid for the stake in 2009.
 
But the company has decided not to take this option for at least another year, Economic Times reported, citing a banker close to the development.
 
The baker said the company is postponing taking the option to potentially give Tata Teservices more time to find a buyer – which could help DoCoMo get a better valuation for its stake.
 
Tata Teleservices has around a 7% share of India's mobile market. But years of intense competition and borrowing has left the company with over 280 billion rupees ($4.6 billion) in debt and accruing net losses.
 
Rumors of an acquisition of the company have been spreading for some time, including a possible three-way merger between Tata Teleservices, Aircel and Sistema Shyam.

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