Google searching for 5% in Vodafone Idea; analysts say why not Airtel?

New Delhi: Google is in initial talks to buy a stake of about 5% in cash-strapped Vodafone Idea, India’s third-largest telecom operator, the Financial Times reported, citing people familiar with the matter. Vodafone Idea was formed in August 2017 by the merger of Vodafone India and Idea Cellular.

The telco, which has been posting losses since the merger, declined to comment on “this speculation”. Both UK’s Vodafone Group and Idea parent Aditya Birla Group declined to comment. Google didn’t respond to ET’s queries. Voda Idea shares closed 2.7% higher at Rs 5.82 on the BSE Thursday, giving it a market value of Rs 16,724 crore. For a 5% stake, Google will have to shell out $110 million (Rs 836.2 crore) based on that. Its Nasdaq-listed parent Alphabet has a market cap of $968.05 billion.