Kumar Mangalam Birla may head Vodafone-Idea merged entity

If the proposed merger of Vodafone India and Idea Cellular comes through then there might be chance that Aditya Birla Group, Chairman Kumar Mangalam Birla may become the chairman of the merged entity, according to a report in Mint.

"The negotiations between the two mobile phone services companies as saying that the merged entity would likely have 12 directors on its board-three from either side and six independent ones," two sources close to the development said.

According to the two sources, Vodafone's stake in the merged entity will fall below 51 per cent although it would remain higher than the Aditya Birla Group's.

However, there is no official statement from both the companies, but Aditya Birla Group's spokesperson said that any talk of appointments is premature.

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If the merger happens, then the new entity is likely to use the Vodafone brand under license from Vodafone Group.

After months of speculation, Vodafone had finally confirmed the merger by saying that it is in discussions with the Aditya Birla Group about an all-share merger of Vodafone India(excluding Vodafone's 42 per cent stake in Indus Towers) and Idea and any merger would be effected through the issue of new shares in Idea to Vodafone and would result in Vodafone deconsolidating Vodafone India.

The proposed merger of Vodafone India and Idea Cellular will create the nation's largest telecom firm with combined revenue of Rs 80,000 crore with a 43 percent market share.