Mumbai, May 29: Vodafone Idea has issued a clarification on the reports claiming that Google was considering a minority state in the telecom major’s struggling India business. "Currently there is no proposal as reported by the media that is being considered at the board," Vodafone Idea clarified, CNBC TV18 reported. Due to reports, the company's stock rallied about 35 percent at day's high on BSE. Vodafone Idea Stock Zooms 30% on Reports on Google Acquiring Stake in the Telecom Operator.
The stock price, however, fell 20 percent after Vodafone Idea issued a clarification. Vodafone Idea said it "constantly evaluates various opportunities for enhancing the stakeholders’ value" but there is no proposal before the board as yet.
CNBC TV18 Tweet:
Vodafone Idea clarifies on FT's reports Google exploring Vodafone Idea stake as part of India push. Company says currently, there is no proposal as reported by the media that is being considered at the Boardhttps://t.co/ZQ93OXFRNe
— CNBC-TV18 (@CNBCTV18Live) May 29, 2020
In clarification to BSE, Vodafone said: "As part of corporate strategy, the Company constantly evaluates various opportunities for enhancing the stakeholders’ value. As and when such proposals are considered by the Board of Directors of the Company warranting disclosures, the Company shall comply with the disclosure obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulation"). Currently, there is no proposal as reported by the media that is being considered at the Board."
"We wish to reiterate and clarify the Company will comply with SEBI Listing Regulations and duly keep the stock exchanges informed of all the price sensitive information," it added.
According to a report in Financial Times, Google was looking to make 5 percent investment in the telecom company. This move could have proved breather for Vodafone Idea which is reeling under financial stress.
(The above story first appeared on LatestLY on May 29, 2020 05:07 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).