Reliance Buys Vanco; Wholesale Unit Excluded

Reliance Communications Inc., India’s second-largest mobile operator, is buying troubled managed network services provider Vanco Plc.

The Reliance Globalcom unit — formerly Yipes Enterprise Services Inc. — said it’s paying $77 million for the U.K.-based carrier. The wholesale division, Vanco Direct, is excluded from the deal.

Vanco executives said shareholders are unlikely to see any money from the sale.

On May 6, Vanco’s shares were suspended from trading on the London Stock Exchange. Vanco had just announced it was reviewing its profitability and talking with bankers about its finances. Founder and CEO Allen Timpany also had resigned a day earlier, reportedly citing Vanco’s financial uncertainty.

Share this article: Email, Slashdot, Digg, Del.icio.us, Yahoo!MyWeb, Windows Live Favorites, Furl
Add this article feed to: RSS, My Yahoo, Newsgator, Bloglines

Read Comments [2]