Tatas Hire Jm Morgan As Vsnl Bid Advisor

The Tatas have mandated JM Morgan Stanley to advice them in bidding for the Centre's 25 per cent stake in the state-owned Videsh Sanchar Nigam (VSNL). A top Tata executive confirmed the development.

Following the submission of the expression of interest (EoI), the Tatas have already been shortlisted for the next round. The government is likely to complete the divestment by August.

Tatas have submitted the EoI through a consortium of group companies including Tata Industries, Tata Steel and Tata Power. The Tatas are yet to finalise the exact structure in which investments from the group firms would flow in, if it bags VSNL.

The submission of EoI for the Centre's stake in VSNL is part of the group's effort to enter into the international long-distance telephony business. Even if these efforts do not materialise, the group could foray into international long distance telephone segment in 2002 when the Centre opens up the sector for privatisation.

Tatas have already announced their plans to enter the national long-distance telephone business in the country. But the group, which has already spent substantial funds for its cellular business, is yet to apply for a NLD licence.

Tatas, through its association with Birla-Tata-AT&T, are yet to finalise investment plans for the fourth cellular licence bids. Though Tatas have submitted application for basic licences, a decision on these projects will depend on the government move.