BENGALURU, April 24 (Reuters) - Bharti Airtel

is in talks to buy UK-based Vodafone Group's ( VOD ) 21.05%

stake in Indus Towers, potentially giving the Indian

telecom operator a controlling stake, the Economic Times

newspaper reported on Wednesday.

If the deal fructifies, the British carrier could infuse

some of the proceeds into Vodafone Idea, its

cash-strapped Indian venture with Aditya Birla Group, the report

said, citing unnamed sources.

Billionaire Sunil Mittal-led Airtel, Indus' largest

shareholder with a 47.95% stake, did not immediately respond to

a request for comment from Reuters.

Vodafone Group ( VOD ), Vodafone Idea and Indus Towers also did not

respond to requests for comment.

Shares of Airtel were up 0.2% while Vodafone Idea was down

3.5% in early trade on Wednesday. Indus Towers was trading 0.11%

higher at 359.90 rupees.

The discussions, however, are stuck over valuation as Airtel

is not willing to buy the stake at Indus Towers' current share

price, which has climbed over 77% since January, the report

said.

Airtel is looking for a valuation of 210-212 rupees per

share - the level at which U.S. private equity fund KKR

and Canadian pension fund Canada Pension Plan Investment Board

sold shares in Indus in February, the newspaper reported.

Earlier this month, Vodafone Idea raised 20.75 billion

rupees ($249.08 million) as part of a larger equity funding,

from Aditya Birla Group entity Oriana Investments via

preferential shares.

It plans to raise 200 billion rupees through equity and 250

billion rupees via debt, it said in February, to roll out its 5G

network service and expand its 4G coverage. Larger rivals Airtel

and Reliance Jio have already launched their 5G services in most

parts of the country.

($1 = 83.3080 Indian rupees)