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India to invite price bids for VSNL, IBP by end-December

The government plans to call for price bids from suitors for state-run telecom giant VSNL and petroleum products marketing firm IBP Co Ltd by the last week of December, a minister said on Wednesday.

"I expect that the financial bids will be called towards the last week of December," Divestment Minister Arun Shourie told reporters when asked by when the government would invite financial bids for the two companies.

Shourie said government officials were working on a plan to distribute Videsh Sanchar Nigam Ltd's cash reserves worth Rs 40-45 billion through a special dividend to shareholders before its privatisation.

The government, which holds a 52.97 per cent stake in the New York Stock Exchange-listed VSNL, plans to bring it down to 26 per cent, by selling a 25 per cent stake along with management control to a strategic partner and another 1.97 per cent to VSNL's employees.

The government, which holds 57 per cent stake in IBP, plans to sell a controlling 33.58 per cent to a strategic partner.

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