Merger Bulletin Updated on 13/05/2013

Business-standard_BSNL, MTNL may be trifurcated_13.5.2013

BSNL-MTNL merger_ Does govt want to repeat Air India folly_13.5.2013
 

Indian govt must define new role for BSNL, MTNL _ ZDNet_13.5.2013

 

BSNL, MTNL to return spectrum; get Rs 12,846 cr - Hindustan Times 12.5.2013

 

Group of Ministers meet on BSNL, MTNL revival cancelled - The Economic Times_10.5.2013

 

Business-standard _ BSNL-MTNL merger a distant dream synergy_9.5.2013

 

IndiaWatch_GoM To Discuss BSNL-MTNL Merger - 09 May 2013 - LIGHT READING INDIA

 

Can BSNL-MTNL Change Their Fortunes_- 09 May 2013 - LIGHT READING INDIA

 

domain-b_ informachone tools_ DoT revives BSNL MTNL Merger Plan 8.5.2013

 

DoT revives BSNL-MTNL merger plan - The Hindu_9.5.2013

 

Time to merge BSNL and MTNL, says DoT - Business Line_8.5.2013

 

Poke Me_ Why BSNL & MTNL should be revived - The Economic Times_2.5.2013

 


2.08.2008 BSNL board clears $10-b IPO plan
2 Aug, 2008, 0003 hrs IST,Joji Thomas Philip, ET Bureau


NEW DELHI: The BSNL board has cleared the company’s proposed $10-billion listing, a top Department of Telcom (DoT) official told ET on Friday. This will bring the company in direct conflict with its employee unions, which have threatened to go on an indefinite strike if the PSU goes ahead with the IPO.

When contacted, a top BSNL executive said: “The BSNL board has recommended the IPO and asked the government to facilitate the listing of the company.” The executive also added that the company has already begun the process of appointing merchant bankers.

On July 24, ET had reported that the government had initiated steps to put state-owned telecom major BSNL’s proposed $10-billion listing back on track. The report also said the finance ministry had asked BSNL to start preparing for the country’s largest-ever listing.

The unions are against the BSNL management’s contention that listing is necessary for expansion and grant of navaratna status. “It is also decided that if the government moves with the IPO proposal, the entire BSNL workforce of three lakh will get into direct action, including indefinite strike. Other PSUs, including HAL, have been granted navaratna status without listing. As such, the arguments put forth for IPO in BSNL are a ploy to disinvest BSNL and gradually privatise it like Videsh Sanchar Nigam (VSNL),” the employee unions of the PSU said in a statement late Thursday night.

Faced with opposition from its unions and the Left parties, the government had shelved BSNL’s IPO twice.
The DoT official said the government would try and bridge “differences between the BSNL management and its employee unions, to ensure that talks between the two sides continue and all outstanding issues are addressed”. BSNL sources also added that the PSU was planning to offer ESOPs and other packages to employees to win their support for the IPO.

It also plans to deploy a portion of the proceeds for a new pension package and for training and redeployment of its employees.

If BSNL does manage to raise Rs 40,000 crore by selling a 10% stake, the telco would be valued at Rs 4,00,000 crore (around $100 billion). This will catapult BSNL into the league of top telcos in the world in terms of market cap. Incidentally, the market valuation of Bharti Airtel is just around $37 billion.
 
28.07.2008 BSNL IPO to pave way for merger with MTNL
heeraj Tiwari & Niranjan Bharati
NEW DELHI
 
   THE government has initiated steps to combine state-run firms BSNL and MTNL. According to government sources, the proposed merger may happen after BSNL’s initial public offer (IPO).
   “The proposal was discussed during the NDA regime and shelved. With BSNL’s IPO looking a clear possibility now, the proposal is being reviewed,” an official in the department of telecommunication (DoT) said. “Once BSNL is listed on the Bombay Stock Exchange, we can explore various possibilities, which may include an open offer or a share swap deal,” he said.
   DoT had in 2004 appointed a financial consultant to look into the proposed merger. It was, however, suggested the merger would be more meaningful if both the entities are listed. MTNL is already listed on the BSE. However, the proposal to list BSNL was shelved because of political opposition.
   The UPA government had earlier taken up the proposal of BSNL’s listing, but it was not acceptable to the Left parties. With the Left out of the government now, the Centre is likely to push for an early IPO.
   The government believes there is synergy between the two firms. A merger will result in a combined entity with a turnover of around Rs 45,000 crore. In comparison, Bharti Airtel had a turnover of Rs 27,025 crore in 2007-08, followed by Reliance Communications (Rs 18,827 crore) and Vodafone (Rs 15,288 crore). MTNL posted an 8.9% increase in net profit to Rs 500 crore in 2007-08 on a turnover of Rs 5,400 crore.
   “The combined entity will not only let BSNL foray into Delhi and Mumbai, but will also strengthen MTNL’s reach,” the official said.
 
07.07.2008 TEAM Members met Shri. Subodh Kumar, Addl. Secretary, DOT during his visit to MTNL Mumbai today and submitted a memorandum for speedy decision in respect of Pension by Govt and Merger of BSNL and MTNL. Shri. Subhodh Kumar assured his support in respect of the issues placed before him. Click here for the extract of the memorandum submitted.

27.06.2008 Coordination Committee formed to achieve merger of

BSNL & MTNL

Today Office bearers of SNEA, AIBSNLEA, TEAM and MEA met in New Delhi and formed co-ordination committee to take up a single point agenda of Merger of BSNL and MTNL. Following Office bearers are nominated to persue the agenda of Merger ahead.

1) Chairman: Com. Satyanarayana     - President AIBSNLEA

2) Convenor: Com. A.K.Kaushik        - GS TEAM

3) Members: Com. Prahlad Rai          - GS AIBSNEA

4) Members: Com. G.L.Jogi               - GS SNEA

5) Members: Com. V.K.Tomar           - GS MEA

 

It has been decided to approach all like minded Unions and Associations of Non executives of BSNL and MTNL and concerned authorities to persue and achieve the merger of BSNL and MTNL.

 

LONG LIVE EXECUTIVES' UNITY !!!