Anil Ambani group firm Reliance Communications is carrying out informal discussions with US telecom major AT&T for selling a minority stake in the company, Wall Street Journal said on Sunday.
The report, which attributed the news to sources familiar with the development, said advisers and officials of both the companies were in touch for the past few weeks but the discussions were informal and still at very early stage.
AT&T, second largest cellphone company in the US with 87 million subscribers, is looking to boost its future growth as domestic markets have saturated. India that has over 600 mn wireless customers and another 17 mn added each month by the mobile carriers is a particularly attractive target.
RCom with 105 mn subscribers and a market capitalisation around $7.4 bn, remains a good prospect for the company.
RCom is also hunting for a potential buyer to raise funds to finance its acquisition of 3G and BWA auctions.
The Wall Street report cited a person privy to the development saying that RCom was in stake sale talks with Abu Dhabi-based Emirates Telecommunications Corp (Etisalat) for about two months, but is now courting other foreign telecom firms including AT&T.
In a significant development o Sunday, the board of the RCom gave its 'in-principle' approval for diluting 26 per cent stake in the company in a strategic sale, allowing for a merger and acquisition deal in the future.
Image: Anil Ambani
