NEW DELHI: Diversified telecoms firm ModiCorp said on Friday it was
interested in bidding for the government's stake in telecoms giant Videsh
Sanchar Nigam Ltd. after a series of regulatory changes made it more attractive.
"The company has approached the Department of Disinvestment, with a
formal intent to acquire shares of VSNL," the statement said. ModiCorp is
the holding company of India's B K Modi business family, which also has
interests in tyres and textiles.
ModiCorp's statement said it was committed to comply with the stipulated
deadlines and ensure that the process of disinvestment is not delayed because of
its inclusion in the bidding process.
The government plans to cut its stake in the New York Stock Exchange-listed
VSNL to 26 per cent from 52.97 per cent by selling a 25 per cent stake to a
strategic partner and another 1.97 per cent to VSNL's employees.
The privatization of VSNL, which is also India's largest Internet access
provider, is billed as India's most ambitious yet in a decade of economic
reforms. The government has set the end of January as the deadline to invite
price bids for the cash-rich international telecoms monopoly.
Two of India's biggest conglomerates, the Reliance group and the Tata
companies, and a consortium comprising unlisted Indian company Sterling Ltd. and
two US-based firms, TyCom Ltd. and CenturyTel, Inc., are in the race to win
control of VSNL.
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