VSNL gains on Teleglobe International buy

DALAL STREET SPIKES

Videsh Sanchar Nigam Ltd (VSNL) was in limelight gaining over 4 per cent on announcement of a global acquisition. According to sources, the acquisition was on the cards for sometime now.

The market in fact seem to have a wind of the deal in advance. VSNL stock in the last one week had appreciated by 15 per cent to Monday's close of Rs 388.80.

The company announced that it has agreed to acquire Teleglobe International Holdings Ltd, a leading provider of wholesale voice, data, IP and mobile signaling services.

The acquisition would be carried out through the amalgamation of Teleglobe with the company's subsidiary in Bermuda. The acquisition value would be $239 million.