Even bailout attempt won’t help Vodafone Idea compete with peers: Analysts

KOLKATA: Any steps taken by the government towards a financial bailout of Vodafone Idea (VIL) ultimately won’t be enough for the struggling telco to compete effectively against Reliance Jio Infocomm and Bharti Airtel, analysts said.

“The government will find it too expensive to provide a large enough fix needed to prop up VIL for anything other than the medium-term,” Deutsche Bank said in a note seen by ET.

The German investment bank said, “The Aditya Birla Group (one of VIL’s co-promoters) may even consider getting Vodafone Idea to go into bankruptcy on the chance that it may be able to repurchase the rump of the business.”