Idea, Spice Merger Talks Could Be Off
After days of speculation about a deal being on, comes talk that merger discussions between Idea Cellular and Spice Telecom could actually be off, according to this report in the Business Standard. The paper quotes sources “close to the development” as saying that the two companies were not able to agree on valuation terms and the future management structure of the merged entity. However, these developments will not hinder Spice Telecom’s IPO, the article said.
Will this mean that Aircel Cellular, which according to a Mint report earlier this week was in talks with Idea and Spice for a three way merger, is not in the running as well or will it try to tie the knot with either one of them?
Spice Telecom may be banking on its IPO as it seems as if it would derive better valuation once the listing process is over. Aircel, being just a one state afffair (NE having least teledensity, hence not an attractive circle) may be takenover by another cellular player as Maxis may not like to be such a small player in the Indian telecom space.