VSNL sell-off winner to be announced in February

NEW DELHI: The government will announce the name of the winning bidder in the

privatisation of state-run telecoms giant Videsh Sanchar Nigam Ltd. on February

5, a top official said on Thursday.

The sale of New York Stock Exchange-listed VSNL, a monopoly provider of

international call service and India's largest Internet access provider, is

billed as the nation's most ambitious privatisation in a decade of economic

reforms.

"We're going ahead with our plan to call for financial bids for VSNL on

February 1," Pradip Baijal, secretary in the Disinvestment Ministry, told

Reuters.

Asked when the government would announce the name of the winner, he said:

"February 5."

The government, which holds a 52.97 per cent stake in the company, plans to

lower it to 26 per cent by selling 25 per cent along with management control to

a private strategic partner and another 1.97 per cent of VSNL's employees.

India's biggest private sector conglomerate, the Reliance Group; Tatas, the

second largest group; and a consortium comprising unlisted Indian firm Sterling

Ltd and two US firms, TyCom Ltd and Century Tel, are in the race for the

company.

Ahead of the privatisation, VSNL's shares leapt as much as 8.03 per cent to

Rs 155.35 in morning trade on Bombay exchange whose 30-share index was up 1.01

per cent.