Vodafone may receive investment of over $4 bn from Amazon, Verizon: Reports
U.S. wireless carrier Verizon Communications Inc. and Amazon.com Inc. may invest more than $4 billion for a stake in India's Vodafone Idea, as per newspaper report, by sending shares in the struggling Indian telecom firm up 10%.
Vodafone Idea's stake-sale talks had been paused as the outcome of a court hearing is pending in India, which created uncertainty and could have threatened Vodafone Idea's survival, according to a news report.
But Amazon and Verizon are set to resume discussions following a Supreme Court ruling which gave mobile carriers 10 years to settle government dues.
Heavily indebted Vodafone Idea - a joint venture between Britain's Vodafone Group Plc and India's Idea Cellular - had previously said its ability to continue as a going concern rested on a positive outcome of the hearing.
It has paid the Indian government 78.5 billion rupees ($1.1 billion) in telecoms dues, according to regulatory filings, but still owes roughly 500 billion rupees ($6.8 billion) more.
Shares in Vodafone Idea, which ended 13% lower after the court ruling, were up by 8% at Rs 10.70 on the NSE index by 0405 GMT.
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