R Comm close to acquiring global virtual network operator Vanco

NEW DELHI: Anil Ambani Group company Reliance Communications is likely to emerge a front runner to acquire UK-based Global Virtual Network Operator Vanco, a move that would bring under Indian company's fold a virtual network in various parts of the world.

According to sources in the know, the negotiations are in the last stage and the deal could be closed by the end of this week.

Although the final price of the deal is not known, at its peak the market cap of Vanco stood at 800 million dollars.

Virtual network operators are companies which lease infrastructure and bandwith from others but provide and manage the communication needs of their clients.

According to sources, 12 international players are in the fray including AT&T, BT, T-System, NTT and private equity firms like Platinium and Oakley.

Vanco has over 750 million dollars worth long-term contracts from its customers.

Reliance Communication is offering CDMA and GSM services in India and is the only player who has been offering the services on both platforms.