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ModiCorp, BPL bid for 25% VSNL pie rejected

The government has rejected offers of ModiCorp and BPL to buy (government's) 25 per cent stake and become strategic partner in Videsh Sanchar Nigam Ltd due to their late approach.

"Divestment department has rejected the offers of ModiCorp and BPL for VSNL and this has been communicated to them," official sources said in New Delhi.

Both BPL and Modicorp had approached divestment ministry in the last two weeks after the government had announced that price bids would be opened by early February.

Sources said that the decision to reject the application was as per the provisions in the expression of interest of VSNL, that new players could not be accommodated at the advance stage of divestment.

BPL Communications approached the divestment ministry early this month evincing interest in bidding independently for VSNL months after withdrawing from a Sterling-led consortium, which had submitted initial bid for VSNL equity.

Tycom and CenturyTel were the two other partners in the consortium.

The government, which currently holds 53 per cent stake in VSNL, is in the process of offloading 25 per cent stake to a strategic partner and another 1.97 per cent to the employees.

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