As per reports that came in yesterday, Global Tech Giant Google was in talks to acquire 5% stake in Vodafone Idea. However, in a clarification issued today, Vodafone Idea has informed that “currently there is no proposal as reported by the media that is being considered at the board”. After the reports of a possible stake sale, stock of the company rallied about 35% at day’s high on BSE.

What this means:
The report of a possible stake sale was seen as a breather for the struggling Company which is facing a near shutdown situation. Though the Company has informed in their clarification that they continue to constantly evaluate various opportunities for enhancing the stakeholders’ value, it can be expected that as markets reopen again, the news will dampen the positive view created for the stock early in the market today. The episode is also a classic example of how market sentiments play out in the wake of a major report, even if it is unconfirmed. After the clarification, as markets closed, Vodafone Idea share prices had dipped 20% from the day’s high.

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