Following the expectations of the mobile operator AT&T buying a stake in Reliance Communications, the shares in the latter surged by nearly 1%. However, AT&T has refused to comment on the matter, as of now.

Reliance Comm shares were reportedly trading high by 1.1% at 177.90 Rupees on a Mumbai stock market which depicted an overall gain of 0.2%.

In the last four sessions, the shares of Reliance Comm have jumped by 26% due to the rising hope of the purchase of its stake. Its shares were valued at $7.7 billion, according to Thomson Reuters data released on Monday.

The people familiar with the informal talks between the mobile operator officials indicated the possibility of a deal between the two to be announced soon. They reiterated that the talks are informal.

Reliance supremo Anil Ambani said on Sunday that its board has accepted the sale of up to 26% equity stake in the company, in order to generate cash for repayment of debts.

Reliance Comm is the No. 2 mobile operator in India with a customer base of over 105 million. It has a market capitalization worth $7.4 billion and has been pursuing stake sale talks with Abu Dhabi-based Etisalat Emirates Telecommunications Corp.