AT&T In Talks With Reliance Communications For Minority Stake [REPORT]
A&T and Reliance Communications Ltd. are in talks for potential equity transaction. The transaction would involve AT&T buying a 26% minority stake in Reliance. However the discussion is at very early stages.
Anil Ambani, the billionaire behind Reliance Communications said that the board has approved a sale today to sell stake in order to raise cash for paying debt and to upgrade networks. Reliance Communications has 105 million subscribers and a market cap of $7.4 billion. One of the reasons why AT&T is interested in investing with Reliance is because India has about 600 million wireless customers and adding 17 million new customers every month.
To help with Reliance’s pitch to AT&T, the company said that they can handle GSM networks, which is what the iPhone runs on. In the past, Reliance could only handle CDMA technology.
[WSJ]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry