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Tatas take over management control of VSNL

The Tata Group formally took over the management control of the Videsh Sanchar Nigam Limited on Wednesday from the central government by signing the shareholders' agreement in Mumbai in the presence of Union Communications Minister Pramod Mahajan.

The Tatas, headed by its chairman Ratan Tata, handed over a cheque of Rs 14.39 billion to Mahajan as payment towards acquiring 25 per cent equity stake in VSNL. The Centre sold its shares at a price of Rs 202 per share.

Meanwhile, the financial institutions led by the Life Insurance Corporation of India expressed their reservations over diluting their equity holding in VSNL in favour of the Tatas at Rs 202 per share during the open offer period.

The institutions preferred to wait for a higher price in future rather than selling their holding now because the price at Rs 202 is not attractive, considering the business potential of the company.

On Tuesday, the Tatas held their first formal meeting with the top officials of VSNL in Mumbai and discussed various issues related to enhancing the valuation of the company by exploring new avenues of business through acquisition and merger.

The acquisition of Birla-AT&T-Tata (BATATA) by the Tata group also figured during the discussions with VSNL top bosses headed by S C Gupta.

Tatas are also likely to nominate its heavy weights such as Dr J J Irani, Ishaat Hussain and Kishore Chaukar on the board of VSNL. Ratan Tata himself will head the team.

UNI

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