Malaysian telecom major Telekom Malaysia may pick up AT&T's 33 per cent stake in Idea Cellular.
While AT&T had expressed its desire to exit India, promoters of Idea Cellular had been in negotiations for a while with a number of other foreign mobile companies including Singapore Technologies (STT).
In a statement issued in Kuala Lampur, Malaysia Telekom said, "Telekom Malaysia Bhd (TM) is continuously reviewing available investment opportunities overseas in line with its current international strategy and Idea Cellular Ltd is a potential opportunity that TM is looking at."
While Idea Cellular executives did not comment on the deal, company sources said the deal was close to finalising. Idea Cellular is a three way joint venture between Tata, Birla and the United States-based AT&T. The US company had earlier sold out its stake in BPL following a decision to exit all non North American business.
If the deal goes through, this will be the first Malaysian telecom company to invest in India. Analysts said with domestic market stagnating Malaysian telecom companies were looking for opportunities abroad. Malaysia Telekom had earlier bid for Indonesia's third largest mobile phone firm Excelcomindo last year.
Malaysia Telecom will also join the list of South East Asian telecom companies like Singtel, Hutchison and First Pacific which have invested in India. The investment would come at a time when Idea Cellular is looking to expand its operations through acquisitions.