Tata Teleservices rallies, Tata Group offers to buy out Docomo stake

NEW DELHI: Tata Teleservices Ltd surged as much as 20 per cent in trade on Monday, after media reports suggested that the parent group has offered to buy out Japanese telecom major NTT Docomo's 26.5 per cent stake for Rs 23.34 a share which is higher than current market price.

The offer came after the finance ministry and the Reserve Bank of India (RBI) rejected the group's application to buy back Docomo's shares at the pre-agreed valuation of Rs 58 a share, said the report.

The report further added that the 60 per cent lower offer was made on the basis of a fair market value determined on June 30, 2014.

Media reports suggested that Docomo has now moved the London Court of Arbitration to get a valuation of Rs 58 a share, which translates into Rs 7,200 crore for its entire stake in Tata Tele.