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Technology Stocks : VSL - Videsh Sanchar Nigam
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From: tech1012/12/2007 11:05:58 AM
   of 20
 
Govt against sale of VSNL residual stake to Tatas

2007-02-12 15:21:59 Source : Moneycontrol.com

The government has apparently conveyed that it is not in favour of residual stake sell in VSNL to the Tatas and the call option which Tatas claim they have is not legally tenable, reports CNBC-TV18.

Sources in the government report that the government believes that VSNL’s call option is not legally tenable.

VSNL has a call option to buy and they can buy upto 26% stake, which the government has in VSNL as of now.

The option expires early tonight, so technically they still can exercise the call option, but the government has been debating the legal validity of these call options ever since the Balco (Bharat Aluminium Company) case happened.

Now the corporate had set up an Empowered Group of Ministers to examine the legal validity and senior government sources say that the government believes all these call options, not just in the case of VSNL (there are also other call options waiting) are not going to be acceptable legally to the government.

We do not know yet whether VSNL wants to exercise a call option because they have not written to the government as yet but if the Tatas were to exercise the call option, the government is clearly going to tell them that they think it is not legally tenable.

moneycontrol.com
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