Tatas complete buy of VSNL

Tatas complete buy of VSNL

BOMBAY: The powerful Tata group acquired a 25 percent stake in
India's monopoly overseas phone service provider on Wednesday,
gaining a firm foothold in the country's fast-growing telecom
market.

The Tatas, a business empire with nearly US$9 billion in
sales, took a big step toward becoming an integrated telecoms
player by winning the bidding last week for state-run Videsh
Sanchar Nigam Ltd (VSNL).

It won the stake with an offer of 14.39 billion rupees. It
must now make an open offer to buy a further 20 percent stake
from VSNL's public shareholders, which could raise the total cost
of the acquisition to 25.90 billion rupees ($532 million). --
Reuters