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VSNL selloff delayed, now expected in October

The government hopes to wrap up the privatisation of telecom giant Videsh Sanchar Nigam Ltd in October, nearly two months behind schedule, a senior government official said on Monday.

"We wanted to finish it by the end of August. But it now appears we'll be able to do it only in October," Pradip Baijal, secretary in the department of divestment, said.

He said the sell off had been delayed because bidders wanted more time to study the company.

"We have had to allow the bidders another round of due diligence. We cannot rush the process through just because we're keen to wrap up the privatisation soon. But I want to do it before March-end when VSNL's monopoly ends," Baijal added.

The government, which holds a 52.97 per cent stake in the state-run monopoly overseas telecom carrier, is selling 25 per cent together with control to a strategic partner and another 1.97 per cent to VSNL's employees.

Three bidders including leading business conglomerates, the Tata and Reliance groups, and a consortium comprising telecom firm BPL Communications are in the fray for the New York Stock Exchange-listed VSNL.

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