Idea Cellular terminates agreement with Videocon Telecom; stock up 2%

Idea has terminated the agreement with Videocon Telecommunications for acquisition of right to use spectrum in Gujarat and UP(West)

Shares of Idea Cellular were up nearly 2% at Rs 100 on the Bombay Stock Exchange after the company said by mutual written consent it has terminated the agreement with Videocon Telecommunications Ltd for acquisition of right to use spectrum in the telecom service areas of Gujarat and Uttar Pradesh (West) for an aggregate consideration of approximately Rs 3,310 crore.

The release further said that no joint intimation of this agreement for Right to Use spectrum under Spectrum Trading Guidelines was filed with Department of Telecom.

There is no cost implication to the company on termination of the captioned agreement, the release added.

The stock opened at Rs 98.75 and touched a high of Rs 100.60. At 9:55am, over 820,000 shares were traded on both the stock exchanges.