Tata in talks with Airtel to sell Tata Sky DTH and Tata mobile services

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As Tata group looks to exit telecom business, Airtel may just be interested in its assets
“Talks (between Tata and Airtel) have been going on for six months,” said one of the three, a Mumbai-based investment banker.

“The Tatas wanted Bharti to take over the entire telecom business. The question is at what value? What are Tatas left with? Tatas would want to clear the debt but the telecom business is not sustainable for them. It does not make sense to put in more money in the business. So, Tata Sky is just a value-add to make the deal more lucrative,” the banker added.
Tata Teleservices gains 6% on reports of merger with Airtel
 

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As Tata group looks to exit telecom business, Airtel may just be interested in its assets

The Tata group is looking to exit its telecom business, which hasn’t really paid off, and is in talks with Bharti Airtel Ltd, three people familiar with the matter said.
The Economic Times first reported on Friday that the Tata group and Bharti were in discussions to form an alliance across telecom and direct-to-home (DTH) television.
For Tata, it is all about exiting its telecom businesses, the three added. The inclusion of Tata Sky (Tata’s DTH business) is just to sweeten the deal for Airtel, which has its own DTH business.
The three said Bharti was definitely interested in all of Tata’s telecom assets: spectrum in 800 Mhz, towers, sea cables and around 45 million active subscribers.
 

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