By IANS,
Mumbai : Reliance Communciations, a part of the Anil Ambani group, saw its scrip soar 11.02 percent Wednesday after reports that the UAE-based Etisalat is in talks to buy a 25-percent stake in the company.
The scrip touched an intra-day high of Rs.155.80, before ending the day at Rs.154.60.
Helped by the surge in the Reliance Communications scrip, the 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) also broke free from range-bound, volatile trading to post a 1.02-percent or 169.81-point gain to end the day at 16,741.84 points.
Reliance Communications, which has been in talks for an overseas partner, strategic or for equity, for nearly two years now, was non-committal about the stake sale.
“The company has been receiving various proposals from time to time from reputed international telecom companies expressing interest in acquiring a strategic equity stake in Reliance Communications,” the company said in a regulatory filing.
“The company evaluates such proposals, in line with the company’s policy to constantly endeavor to enhance overall shareholder value,” it said, adding it would disclose any developments at an appropriate time.
The reports of stake sale came after Etisalat — which has been bullish on India and wants to be a significant player in the country — withdrew from the third generation (3G) telecom airwaves auction in India after the bids surpassed the $2 billion-mark.
An Abu Dhabi-based English daily, The National, had reported last week that Etisalat chairman Mohammed Omran had plans to acquire companies in India, which is the second-largest and the fastest-growing mobile market in the world.
In September 2008, the company, which has over 100 million customers across 19 countries globally, had bought 45-percent stake in Swan Telecom for a cash consideration of close to $900 million.
The company’s Indian operations, now called Etislat DB, has also unveiled its tariff for telecom services in the country under the “Cheers Mobile” brand name.