Spice Communications, owned by billionaire B K Modi, may consider buying out Telekom Malaysia, its partner in the phone company, if the latter fails to come up with a stake-raising plan by June, a top company official said.

"If this proposal does not come through, or does not match our expectations, we will buy them out," a top official with Spice Communications said on condition of anonymity.

Telekom Malaysia, South Asia's second largest telecommunications company, owns 39.2 per cent in the Indian company and was keen to increase it to 74 per cent, the upper limit for foreign direct investments in the Indian telecom sector.

According to telecom analysts, acquiring Telekom Malaysia's stake could be a good move as it would enable Spice Communications to resell it to other partners. The Malaysian company has the first right of refusal in case Modi intends to reduce his stake.

Spice Communications Chairman B K Modi declined to comment on the specifics, but added that the company was exploring all options.

"Even if Telekom Malaysia wants to raise stake in the company, they will have to put in a proposal, only after which we can take a decision," Modi said.

Meanwhile, the Modi family, which owns 40.8 per cent in Spice Communications, may also negotiate directly with buyers to sell its stake.

"Telekom Malaysia is already in talks with buyers, they will first put forward their proposal to us. If the proposal is not acceptable then we will talk to buyers ourselves," Modi said.

The US-based billionaire, who owns media companies including multiplexes, confirmed that he did not have any proposals before him, including from Idea Cellular [Get Quote]. "Idea may be talking to Telekom Malaysia, but not directly with us right now," he said.

Modi said he wasn't ready to sell his stake below Rs 60 a share. "I have been saying it for a long time now that we will not like any offer below Rs 60 a share, it is a fair price." The public and financial institutions hold a 20 per cent stake in Spice Communications.

There has also been strong speculation regarding UAE-based telecom giant Etisalat's interest in acquiring the Modi family's stake.