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BPL talks to Vodafone, Essar

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CIOL Bureau
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MUMBAI: BPL Communication is likely to announce its strategic partner in a couple of days, according to a senior executive of the company.

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The Indian mobile telephone service provider is expecting to part of its stake worth $1.28 billion (Rs 5200 crore) and is talking only to two players — Vodefone and Essar.

Sanjay Prabhu, Vice President, BPL Communications confirmed they were talking only to two partners.

"We have been talking to several foreign and Indian players. At present, we are talking to Vodafone and Essar and will announce about the new partner in another two days," he said.

BPL is not even against divesting a controlling stake. But the FDI norms bar foreign players from holding more than 49 per cent stakes in an Indian company.

The Ruias-promoted Essar Teleholdings has 9.99 per cent stake in BPL Mobile. According to cellular license conditions Essar cannot hold more than 10 per cent stake in a competing telecom license as it holds over 35 per cent stakes in Hutch.

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