1 Modis sell 40% in Spice directly to Idea before merger. TM, which holds 39%, gets a stake in Idea post-merger
2 TM first buys Modis’ stake in Spice and co merges with Idea later. Even then, TM becomes a shareholder in Idea
Why Idea may want to buy
Strong foothold in Punjab and Karnataka circles, which boast of high average revenue per user
Merged entity will become fifth-largest telco in terms of mobile subscribers (28.5 m)
Idea set to become pan-India operator by 2009
Why Modis may want to sell
Spice’s inability to expand & become pan-India player
DoT had rejected pan-India licences for Spice citing poor net worth
Spice’s expansion plans yet to be finalised
TM known to share frosty relationship with Modis
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