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The bitter battle that has been brewing between the Tatas and the Birlas over the ownership and control of Idea Cellular appears to be approaching a final solution. With the Tatas considering Malaysia's Maxis Communications as a `preferred bidder' for sale of its 48.2 per cent equity stake in Idea, the ball is now squarely in the Birlas' court. The Birlas, who enjoy the right of first refusal on this stake, have tentatively indicated that they are willing to match the Maxis offer.

If this goes through, it will mark the Birlas' direct foray into the telecom market, reversing their earlier stance about this sector. And the Tatas will be focussing their energies entirely on Tata Teleservices as a CDMA mobile play competing with Reliance Communication.

Aditya Birla Nuvo, which is the principal stakeholder of the Aditya Birla group's 50.2 per cent stake in Idea Cellular, is likely to bankroll a substantial part of this deal. Stay with this stock as it may walk away with Idea.

Krishnan Thiagarajan

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