Google mulling stake in Vodafone Idea inadequate to solve debt woes: Analysts

A potential investment by Google into cash-strapped Vodafone Idea (VIL), if materialises, will be a strategic positive for the Indian telecom operator, but a five per cent stake would be still be inadequate to solve the telcos’ debt problems, analysts said on Friday.

Acquisition of a controlling stake by an outsider or a sizable equity infusion by current promoters remains the need of the hour, Credit Suisse said in its latest note.

Alphabet Inc’s Google is said to be eyeing about 5 per cent stake in VIL, the Financial Times had reported on Thursday. Such an investment in VIL will pit the search giant against Facebook which has picked up a stake in Jio Platforms, the firm that houses India’s youngest but biggest telecom company – Reliance Jio.