It's official.
Vodafone Idea
is not in talks to tie up Tesla CEO
Elon Musk
's
satellite internet
unit
Starlink
, the Indian telecom operator said. "We would like to submit that the company is not in any such discussion with the named party. We are not aware of the basis of the said news item,"
Vodafone
Idea said in a statement.
Why the clarification
The clarification from Vodafone Idea came after its stock surged in the past two sessions after a media report claimed that Musk was looking to buy a stake in the company to help Starlink enter India.
On January 1, the Bombay Stock Exchange, where Vodafone Idea's stock is listed, had asked the company for a clarification, citing the media report.
The report was published on Friday (December 29) after Vodafone Idea's stock surged 21%. The stock jumped another 6% on Monday, with trading volume on each day roughly 1.7 billion shares, the most in almost two years.
Vodafone Idea's stock fell about 5% after the company's clarification on Tuesday afternoon, with nearly 1 billion shares changing hands.
UK-based Vodafone, whose Indian unit merged with Aditya Birla Group's Idea Cellular in 2018 to form Vodafone Idea, has partnered with Starlink's rival, Amazon.com's Kuiper for internet networks in Europe and Africa. Amazon Kuiper does not operate in India.
Vodafone Idea's telecom industry rivals in India Bharti and Reliance also own satellite companies.
English (US) ·