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June 29, 2001
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Money > Business Headlines > Report June 29, 2001 |
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France Tele may bag stake in merged entityArijit De France Telecom, which is a 26 per cent stakeholder in BPL Mobile, is likely to be offered a stake in the new entity formed out of the merger between BPL Communications and Birla-Tata-AT&T. Sources close to the deal told Business Standard that the eventual game plan being considered was a two-step deal, wherein first BPL Mobile and BPL Cellular would get merged with BPL Communications, BPL's holding company for cellular operations. In the second stage, BPL Communications would be merged into Birla-Tata-AT&T. Legal clearance for the merger to form BATL is expected in another two weeks. Sources said the final structure has yet to be officially approved by the partners involved. Sources familiar with the negotiations said France Telecom was not "comfortable" with a minority stake in BPL Mobile, as the operating company would not eventually get listed. "Hectic parleys are on to include France Telecom in the merged company and a greater presence if possible. Indications are that if France Telecom remains, it would do so only in a listed company," they said. France Telecom has yet to arrive at a formal decision. The move to include France Telecom is meant to ensure that it does not ally with any other domestic cellular major. Sources said that including France Telecom, however, will not mean that the new merged entity will use the Orange brand in India. "It would lead to tremendous brand confusion among users," they explained. While France Telecom indirectly owns the Orange brand globally, in Bombay the rights to the brand rests with Hutchison. However, Hutchison cannot use the brand elsewhere in India. Hutchison, which plans to expand operations with Essar, has said it will come out with a new national brand and drop the Orange brand altogether. Powered by YOU MAY ALSO WANT TO READ:
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