Vodafone Idea (Vi) is not in talks to tie up with billionaire Elon Musk's satellite internet unit Starlink, the Indian telecom operator said on Tuesday, sending its shares down 5%.
The clarification from Vodafone Idea came after its stock surged in the past two sessions on what business magazine BusinessWorld said were "markets betting" that Musk was looking to buy a stake in the company to help Starlink enter India.
On Monday, the Bombay Stock Exchange, where Vodafone Idea's stock is listed, had asked the company for a clarification, citing the BusinessWorld report.
"We would like to submit that the company is not in any such discussion with the named party. We are not aware of the basis of the said news item," Vodafone Idea said in a statement.
The BusinessWorld report was published on Friday after Vodafone Idea's stock surged 21%. The stock jumped another 6% on Monday, with trading volume on each day roughly 1.7 billion shares, the most in almost two years.
Vodafone Idea's stock fell about 5% after the company's clarification on Tuesday afternoon, with nearly 1 billion shares changing hands.
U.K.-based Vodafone, whose Indian unit merged with Aditya Birla Group's Idea Cellular in 2018 to form Vodafone Idea, has partnered with Starlink's rival, Amazon.com's Kuiper for internet networks in Europe and Africa.
Kuiper does not operate in India.
Domestically, Bharti Airtel and Reliance's Jio are market leaders in the telecom sector, snatching subscribers from debt-ridden Vodafone Idea, which has not reported a profit since it was formed.
Bharti and Reliance also own satellite companies.
