, Columnists
Vodafone's Big Idea
Colao finds a reasonable way out of a painful situation.
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Vodafone CEO Vittorio Colao has negotiated a partial retreat from a tough situation in India on reasonable terms. Given a bloody price war brought on by a new rival, the deal to join forces with Idea Cellular Ltd is smart even though Colao has ceded control without getting a premium.
Vodafone Group Plc and Idea said on Monday that they would combine their Indian mobile operations to create the country's largest carrier with 395 million subscribers, vaulting the new company ahead of Bharti Airtel Ltd. At first, Vodafone and Idea will share ownership, although power will tilt towards the Indian side.