Vivendi denies in talks for Reliance Comm stake

(Reuters) - Vivendi, Europe's largest entertainment group, said on Wednesday it was not in talks to buy a 26 percent stake in mobile carrier Reliance Communications.

The Economic Times said Vivendi, which has telecom operations in France, Morocco and Brazil, had been talking to Reliance for a month and discussions were at an advanced stage, citing a person with direct knowledge.

Reliance Communications, the No.2 mobile carrier in India's fast-growing market, is burdened by debt and the cost of rolling out third-generation (3G) services. It said earlier this month its board had agreed to sell up to 26 percent of the firm.

The company has a market capitalisation of 384 billion Indian rupees ($8.6 billion) and is majority owned by billionaire Anil Ambani's Reliance conglomerate.

Vivendi spokesman said the company was not in any talks with Reliance Comm.