US telecom giant Verizon denies rumors of Vodafone Idea acquisition.
US telecom giant Verizon has denied rumors regarding the takeover of the cash-strapped Vodafone Idea. Sowmyanarayan Sampath, CEO, Verizon Consumer Group said that the company has no intention to buy Vodafone.
“It”s definitely not a question of regulatory [climate] but of opportunity,” Mr Sampath said at a press conference.
He humorously pointed out that Verizon may have considered the option of buying an Indian company if the US wasn”t big enough or growing. “There is opportunity for us [consumer division] to grow further in the US and thus we are staying focused and doubling down capital investments there,” he said.
“India is a critical part of our growth plans…It is about capabilities and accessing talent pools we can”t access anywhere else in the world,” he added.
With a consolidated revenue of $32.6 billion for the quarter ended June 2023 and Consumer business revenue of $24.6 billion, Verizon is the largest consumer telecom company in the world.
Vodafone Idea had earlier denied rumours of consultations with Verizon, Amazon, or Elon Musk-owned Starlink on acquisition. After the announcement, Vodafone Idea shares faced a setback on Monday. However, the Indian telecom major has recovered on Wednesday with a gain of 1.31%.
The shares have turned multibaggers with a gain of 109.65% from their 52-week low of Rs. 5.70 recorded on March 31, 2023. Over the past one month, the stock has gained 51%. However, analysts have taken a bearish stand and advised profit booking on the stock as it faces resistance around Rs.11.80.
