Vivendi in talks with Reliance Comm for stake: Report 

Europe's largest entertainment group, Vivendi, is in talks with Reliance Communications to buy a 26% stake in India's No. 2 mobile carrier, the Economic Times reported on Wednesday.

Vivendi, which also has telecom operations in France, Morocco and Brazil, has been talking to Reliance Communications for a month and the discussion are now at an advanced stage, the newspaper said, citing a person with direct knowledge.

If the deal is finalised Reliance would issue new shares to Vivendi, the newspaper said. The French company would then have to make open offer to buy a further 20% from other shareholders as per Indian regulations.

Officials at Reliance Communications and Vivendi could not immediately be reached by Reuters for comment.

Reliance Communications, burdened by debt and the cost of rolling out 3G services, said earlier this month its board had agreed to sell up to 26% of the firm.

Since the stake sale announcement, speculation has been rife that global firms such as AT&T Inc and South Africa's MTN Group could partner with Reliance Communications. Both the firms have denied that they were in discussion for a deal.

Abu Dhabi's Etisalat has said it was looking to buy a stake in an Indian operator and was evaluating several options including a deal with Reliance Communications as it mulls its options in India.