Etisalat, Telcel, Altimo vie for $1 billion stake in Tata Tele

13 May 2008

Mumbai: UAE's Emirates Telecommunications (Etisalat) is vying with Mexican telecom firm Telcel and Russian operator Altimo for a $1-billion stake in Tata Teleservices Ltd, media reports said.

Tata Tele is evaluating options to sell a 10 per cent stake in the company, and reports say the UAE firm is likely to emerge the highest bidder as the firm is evaluating several options to invest in India.

Etisalat chairman Mohammad Omran has also expressed interest in investing in India.

At $1 billion for a 10 per cent stake, Tata Teleservices is assessed at an enterprise value of over $10 billion.

Sources, however, said Etisalat's Pakistan connection may hinder a deal. The West Asian telcom operator has a significant presence in Pakistan, which may open up security-related issues.

Etisalat owns 26 per cent stake in state-owned Pakistan Telecommunications and has recently acquired a 16.5 per cent stake in another Pakistani telecom firm, PT Excelcomindo Pratama.