M&A watch: Vodafone may buy Tata Comm

M&A watch: Vodafone may buy Tata Comm

Dylan Bushell-Embling  |   February 04, 2014
telecomasia.net
A series of major international telecom M&As could be in the offing, according to various reports.
 
India's Economic Times reported that Tata Group - already rumored to be considering a sale of its majority stake in cellco Tata Teleservices – may instead be planning to exit the telecom sector altogether. This would mean also selling the internationally-focused Tata Communications.
 
The report cites sources claiming that Vodafone is in talks with Tata Group over a potential purchase of Tata Teleservices – as suggested earlier this month - as well as Tata Communications.
 
AT&T last week ruled out acquiring Vodafone, despite a flurry of rumors that it was planning a bid. But according to new rumors, this could free China Mobile to acquire up to a 20% stake in Vodafone.
 
The ultimate goal of the stake acquisition would be greater co-operation between the two operators on international projects, according to the reports, including a potential joint venture aimed at the growing African market.
 
Vodafone and China Mobile experimented last year with a joint bid for a Myanmar mobile license, but withdrew their bid before the tender commenced, announcing that they had determined that the opportunity does not meet either company's strict investment criteria.
 
Softbank founder and Sprint chairman Masayoshi Son meanwhile met with the US FCC yesterday, potentially to discuss a potential merger between Sprint and T-Mobile USA, Reuters said
 
Softbank paid $21.6 billion for a 78% stake in Sprint last year following a protracted bidding war. Now, Son hopes to consolidate Sprint's position in the market through a merger with smaller rival T-Mobile USA.
 
But any deal involving combining the market's third and fourth largest operators is likely to be met with close scrutiny from regulators.
 
 
Dylan Bushell-Embling

 

Telecomasia.net full website

© 2012 Questex Asia Ltd., a Questex Media Group company. All rights reserved. Reproduction in whole or in part is prohibited. Please send any technical comments or questions to our webmaster.