- Idea Cellular is exploring a merger with Vodafone India (NASDAQ:VOD) to create India's biggest telecom, CNBC-TV18 reports.
- Idea, the third-largest telecom in India, has blasted the report as "baseless and absolutely false" and "preposterous." Vodafone India is the second-biggest provider; the two combined would outsize No. 1 Bharti Airtel.
- Sources told CNBC-TV18 that the two companies were engaged in discussing strategic options that could result in a full combination. That would preclude Vodafone India's moves toward an initial public offering.
- Such a deal would run into challenges, including clearance from the Competition Commission, considering that market share would rise about 50% in some areas.