Tata to exit telecoms industry?
Indian multinational Tata Group may exit the telecommunications industry entirely with the sale of both Tata Communications and Tata Teleservices, according to local reports.
UK mobile operator Vodafone is discussing the acquisition of Tata Teleservices, and this week Cyrus Mistry, chairman of Tata Group, told India’s Economic Times that the company was looking to exit the telecoms industry entirely.
Sources claim that Tata has been speaking with Vodafone for the sale of Tata Communications as well as its Teleservices unit.
Deal talks are said to be at a preliminary stage and sources expect that Tata group will first buy out the Indian government’s 26.5% stake in Tata Communications before selling the unit to Vodafone.
Should Vodafone successfully acquire Tata Teleservices, the UK firm would overtake Bharti Airtel as the largest mobile operator by subscribers in India.
Both Tata Group and Vodafone have denied to confirm anything at this stage.