VSNL to meet on Friday to mull dividend

MUMBAI: The board of directors of Videsh Sanchar Nigam Ltd. (VSNL) will meet

on December 14 to consider an interim dividend for the year to March 2002, the

Bombay Stock Exchange (BSE) said on Tuesday.

Last month, Disinvestment Minister Arun Shourie said government officials

were working on a plan to distribute VSNL's cash reserves -- worth Rs 40 to 45

billion -- through a special dividend to shareholders before its privatization.

The government, which holds a 52.97 per cent stake in VSNL, plans to bring

its holding down to 26 per cent by selling a 25 per cent stake and giving

management control to a strategic partner and selling another 1.97 per cent to

VSNL's employees.

The New York Stock Exchange-listed telecom giant already declared in July a

dividend of Rs 50 per share, including a special dividend of Rs 40.

(C) Reuters Limited.