Tata Comm shares rally cabinet approves land spin-off

TATA-COMM-SHARES-RALLY-CABINET-APPROVES-LAND:Tata Comm shares rally cabinet approves land spin-off

 

Reuters Market Eye - Shares in Tata Communications gain 6.4 percent after the cabinet on Thursday paved the way for the mobile carrier to sell surplus land.

The sale of the entire land could fetch at least 60 billion rupees, though not all of it would go to Tata Communications given the government owns a sizeable stake, as do previous owners of the land, according to traders.

The issue has been a longstanding one for Tata Communications, which used to be a former state monopoly. The government still owns 26 percent of the company.