The clarification came after Vodafone Ideas’ stock surged in
the past two sessions on what business magazine BusinessWorld said were “markets
betting” that Musk was looking to buy a stake in the company to help Starlink
enter India.
"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 on Tuesday, a day after the
Bombay Stock Exchange, where its stock is listed, asked for a clarification on
the report.
The BusinessWorld report was published on Friday after
Vodafone Idea's shares surged 21 percent. The stock jumped another 6 percent on
Monday, rounding out its busiest sessions in about two years.
However, the stock fell more than 5 percent in heavy trading
on Tuesday after the company's clarification.
Starlink, Musk and SpaceX -- Musk's rocket company that owns
Starlink -- did not immediately respond to Reuters' requests for comment.
Vodafone Idea has not reported a profit since it was formed
in 2018 -- through the merger of UK-based Vodafone's Indian unit with Aditya
Birla Group's Idea Cellular -- as it loses subscribers to Bharti Airtel and
Reliance Industries' Jio.
Moreover, the Indian government owns roughly a third of
Vodafone Idea after it converted into equity all the dues the company owed for
using airwaves and spectrum.
Vodafone Idea’s financial woes make it an unattractive
partner, said Karan Taurani, an analyst with Elara Capital.
“On one end it is struggling to raise more cash and on the
other end they have a large debt to service,” Taurani said.
While Vodafone Idea does not have a satellite company,
Bharti-backed OneWeb and Reliance’s Jio Satellite Communications have
regulatory clearance to operate in India.
UK-based Vodafone has partnered with Starlink’s rival, Amazon.com’s Kuiper for internet networks in Europe and Africa. Kuiper does not operate in India. © Reuters