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07/08/2009
BSNL-MTNL merger only after
BSNL listing: Government
The telecom ministry will decide on the merger
between the state-owned telecom companies, Bharat
Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone
Nigam Ltd (MTNL), only after the listing of the
former.
“MTNL is a New York Stock Exchange- (NYSE) listed
company, and a merger would not be possible without
the listing of BSNL. We will first look at listing
BSNL and then will decide on the merger,” Union
Minister of State for Communications and
Information Technology Gurudas Kamat said.
The merger was on the agenda of the government and
was discussed many times with the board of the
companies. However, a concrete decision was not
reached at. Apart from the NYSE listing, MTNL is
also listed on Indian bourses.
When asked about the employee union’s concerns of
BSNL’s Initial Public Offering (IPO), the minister
said the government would discuss the issue with
the unions. “We will address it,” he added.
He said BSNL has been making profits, and that
steps have been taken to improve the PSU’s profits.
On the allocation of 3G and WiMax spectrum, the
minister said allocation would start by the end of
this year. Source: Business Standard |