Blue Star infotech spin-off delayed

Blue Star's proposal to demerge its international software division into a separate company, Blue Star Infotech Ltd, has been delayed due to a lengthy legal process yet to be completed.

Blue Star Ltd. Chairman and Chief Executive Ashok M. Advani said in a letter to shareholders that he was hopeful that the procedure would be completed in the next few months. However, the terms of the demerger would be adhered to. Lengthy court proceedings have delayed implementation of the scheme. The petitions await final hearing and the High Court approval is expected shortly.

Blue Star has two subsidiaries in the US and England to market its software services. USIN International Inc is a 100 per cent subsidiary of Blue Star Ltd. marketing software services offered by the company's international software division. A new company was incorporated in the UK as a subsidiary of USIN in September 1998 to tap the software market in Europe.