India's Reliance in Informal Talks With AT&T

Apparently, India's Reliance Communications and AT&T have sounded out each other's interest about a potential transaction in which AT&T would take a significant minority stake in the Indian cellphone company.

Reliance, which is backed by billionaire Anil Ambani, said on Sunday its board has approved the sale of up to a 26% equity stake in the firm to raise cash for debt reduction and network upgrades. The Indian company, the nation's second-largest wireless carrier with 105 million subscribers and a market capitalization around $7.4 billion, has been in stake sale talks with Abu Dhabi-based Etisalat Emirates Telecommunications Corp. for about two months but is now courting other suitors including AT&T and other foreign telecom firms. AT&T, the second largest U.S. cellphone company, with 87 million subscribers, is looking at international expansion as the domestic market saturates, sapping future growth potential. India is a particularly attractive target, with over 600 million wireless customers already and carriers adding 17 million new ones per month.