Vodafone shares have fallen on reports it is preparing a bid for Hutchison Whampoa's Indian mobile phone business.
India's mobile market is growing fast as consumer spending rises
The mobile phone giant is widely expected to offer as much as $13.5bn (£6.9bn) for Hutchison Essar.
The move would be consistent with its strategy of expanding in fast expanding markets to offset slow European growth.
But, further reports suggest Vodafone may face a rival bid from India's Reliance Communications. All of the companies declined to comment.
Vodafone's shares slipped almost 2%, or 2.5 pence, to 143.5 pence in afternoon trade on the London market.
Vodafone currently has interests in emerging markets including Egypt, Romania and India - and underlined its ambitions for further expansion in similar markets at an investor meeting earlier this month.
The news came after it unveiled a £3.3bn half-yearly loss in November as it was hit by higher interest rates, competition and some of its assets being worth less than it thought.