Jan 30, 2017
Vodafone's Indian unit in merger talks
Vodafone was forced to write down the value of its Indian business by 5bn euros in November amid the intense competition. The merger talks with Idea suggest "Vodafone is taking the Indian tiger by the scruff", said Neil Wilson, an analyst at London brokers ETX Capital. "Something had to be done and this merger might be the way to strengthen Vodafone's hand in the Indian price war." In its statement on Monday, Vodafone said a merger with Idea would enable it to take the India unit off its books and receive a dividend from the new business. Shares in Idea Cellular, owned by the Aditya Birla Group, have surged 26% on confirmation of the merger talks.
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