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ModiCorp shows interest in VSNL

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CIOL Bureau
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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.

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"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.

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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.

© Reuters Limited.

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