Tata Teleservices gains 17% on reports of merger with Airtel

NEW DELHI: Shares of Tata Teleservices gained over 17 per cent on Friday on reports of a possible merger between telecom companies, Tata Group and Bharti Enterprises.

Following the development, shares of Tata Teleservices advanced 17.10 per cent to end the day at Rs 8.56 on BSE. The stock opened at Rs 7.75 and touched an intraday high and low of Rs 8.69 and Rs 7.61, respectively.

The two companies have held exploratory talks to evaluate a mega alliance involving their telecom, overseas cable and enterprise services, and direct-to-home TV businesses, sources familiar with the matter told ET.

Discussions between both sides have revolved around a possible merger between Tata Teleservices, Tata Sky and Tata Communications with the Sunil Mittal-owned Bharti Airtel which includes its wholly owned DTH arm, the sources added.

On the BSE, 41.76 lakh shares were traded on the counter so far as compared to a two-week average of 8.03 lakh shares.

Shares of Bharti Airtel gained 1.07 per cent to end the session at Rs 385.50.