Anil Ambani-led Reliance Communications announced that its board members have sanctioned a 26% stake sale in the company after much speculation over UAE-based Etisalat's interest in the offer.

The company statement said, "The board of directors of Reliance Communications has approved in-principle the induction of strategic or private equity investors into the company for an up to 26 percent equity stake at an appropriate premium."

The directors of RCom, which has a subscriber base of 109 million and provides mobile services on both GSM and CDMA platforms, also gave its approval for acting on other strategic or consolidation alternatives.

But, RCom has not revealed the name of the strategic buyer.

The speculation of stake sale started after Etisalat, which has been bullish on India and wants to be a major player in the country, withdrew from 3G telecom airwaves auction after the bids exceeded the $2 billion-mark.

Such statements of stake sale had seen the shares of RCom gained 14.03% on the BSE during the week ended June 04 at Rs 168.15.

An Abu Dhabi-based English daily The National reported last week that Etisalat chairman Mohammed Omran had plans to acquire companies in India, which is the second-largest and the fastest-growing mobile market in the world.

In September 2008, Etisalat got hold of 45% equity stake in Swan Telecom. In July 2009, Etisalat signed a 10-year long-term infrastructure sharing pact with Reliance Communications.

Reliance Communications, which has been in making discussion for an overseas partner or strategic sale for nearly two years now was earlier noncommittal about such specific moves but also did not rule out such a possibility.

"The company has been receiving various proposals from time to time from reputed international telecom companies expressing interest in acquiring a strategic equity stake in Reliance Communications," the company said last week. (With Inputs from Agencies)