An update on the impending Spice Telecom-Idea Cellular merger: Mint reports that Aircel cellular, of which 74 percent is owned by Malaysian telco Maxis, is also in talks with Idea and Spice for a three way merger. The merger will give the combined entity greater bargaining power for procurement of equipment, handsets etc.

SEE ALSO: Updated: Spice Telecom, Idea Cellular Merger On The Cards?

Meanwhile, before the Spice Telecom IPO, the company has sold stake to Lehman Brothers and Spinnaker Investments for around $30 million, reports ET. They’ve apparently picked up around 20 percent of the 138 million shares at Rs. 45 per share, as a part of a pre-IPO placement. The company is expected to file a draft Red Herring Prospectus tomorrow. Post IPO, the Modi’s will hold 41 percent stake, while Telekom Malaysia will hold 39 percent stake in the company.

Apparently, the merger talks will be stalled now until after the Spice IPO, which is expected to help the company’s valuations. And I suppose all this talk about mergers will help the company’s IPO, so it works out rather well for Spice Telecom - merger or not.