Indonesian operator Indosat said it could not comment on a local media report that it wanted to acquire smaller rival PT Hutchison 3 Indonesia — a deal that would create a new number two in one of Asia’s largest mobile markets.

Indosat, which is 65 per cent owned by Ooredoo, was responding to a query from the country’s stock exchange about the possible $395 million acquisition, according to Reuters.

Combining Indosat’s 54 million mobile connections with the 37 million held by Hutch would put the combined entity into second spot, ahead of Axiata (Q4 2014 figures from GSMA Intelligence).

However, the combined entity would still lag well behind giant Telkomsel, which is comfortably the country’s largest operator.

The original report about a possible deal was in Indonesia Finance Today.