VSNL jumps up on Tyco Global acquisition

DALAL STREET SPIKES

International telecom carrier, VSNL jumped 18 per cent to Rs 329.15 at close on the announcement about the acquisition of Tyco Global Network.

"The acquisition of Tyco is expected to give it an ability to offer higher bandwidth and expand its network domestically. The current rally in the stock is in anticipation of the company's rising strength in the sector," an analyst from a leading broking firm said.

VSNL had announced that it has acquired Tyco Global Network, which has an undersea cable network spanning across various continents.

With this acquisition, estimated at $130 million, it has become one of the world's largest providers of submarine cable bandwidth.

The scrip had been rising sharply in the past few days tracking a rally in its ADR.