'Not in any such discussion...': Vodafone Idea denies talks with Elon Musk's Starlink
Telecom operator Vodafone Idea Ltd. has clarified that the company is not in any discussions with Elon Musk's Starlink. "We are not aware of the basis of the said news item," the company said in an exchange filing. "The company is not in any such discussion with the named party," it said.
Vodafone Idea's stocks have surged as market speculations heat up regarding a potential collaboration between the telecom company and Elon Musk's Starlink. Following media reports that suggested a partnership between the telecom behemoth and the American tech mogul's satellite internet company, the Securities and Exchange Board of India (SEBI) intervened and asked Vodafone Idea to clarify.
Following its intervention on Monday, January 1, 2024, SEBI raised expectations among investors for Vodafone Idea's response. Vodafone Idea responded to SEBI's request for explanation by sending an official statement to the Indian stock market bourses.
The business said, "The Exchange has sought clarification from Vodafone Idea Ltd on January 1, 2024, with reference to news...dated January 1, 2024, quoting 'Elon's Starlink Tie-Up Talks In Market Pumps Vodafone Idea To The Skies In India'."
Vodafone Idea has now provided clarification, stating, "We wish to reiterate and clarify that the Company will comply with SEBI Listing Regulations and duly keep the stock exchanges informed of all the price sensitive information."
The excitement over a possible cooperation reached a fever pitch last week when rumours circulated that Elon Musk will be visiting Gujarat on January 10, 2024, to have talks for a partnership with Vodafone Idea. Vodafone Idea's stock value surged significantly, presumably because Starlink needs a local partner in India to develop its internet services via satellite connectivity.
The news report claimed that the Government of India (GoI) may sell its 33 per cent stake in the telecom company to tech-giant and American billionaire Elon Musk and his satellite internet venture Starlink collaborating with the carrier. This triggered strong buying in Vodafone Idea shares on Friday, which continued on Monday session as well.