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