Vodafone Idea: Reports of stake sale to LIC baseless

Bengaluru: Vodafone Idea on Monday described the talks about life insurance major LIC picking up a stake as “baseless speculation”. Market players and sources within the insurance giant, however, said there were initial talks between the two, and that the government-run life insurer may look at the troubled telecom service provider to buy a large minority stake.

According to market sources, if a deal is finalised, the life insurance major is expected to pick up the stake through the preferential allotment route. They said that in case the LIC-Vodafone Idea deal is sealed, it would help revive investor confidence in the telco. This could bring in more players to invest in the beleaguered telecom giant, like it happened in the case of Yes Bank where banking giant SBI led a rescue plan.