Kumar Mangalam Birla 'unanimous' pick to head Voda-Idea combine

Moneycontrol BureauKumar Mangalam Birla, Chairman of Aditya Birla Group, could be appointed chairman of the entity that will be created out of the proposed merger between Idea Cellular and Vodafone India, according to a report in Mint.
The report quoted a person privy to the preliminary talks between the telecom giants as saying that Birla appears to be the unanimous choice for chairman. The person said that Vodafone cannot be seen as having greater control in the merged entity, and Birla’s appointment would help it make the case that it has deconsolidated its subsidiary Vodafone India.

Another person in the know that the merged entity would have 12 directors on its board – three from either side and six independent ones.

While an Idea spokesperson declined to comment, spokespersons for Vodafone India and its parent Vodafone Group Plc did not respond to e-mails. A spokesperson for the Aditya Birla Group, which owns Idea Cellular, said that any talk of appointments is premature, according to the report.

According to the two people, Vodafone’s stake in the merged entity will fall below 51% although it would remain higher than that of the Aditya Birla Group.