Search the Internet          Tips  Sites: Finance, Investment

VSNL meet ends without dividend decision

A special meeting of Indian government officials ended on Friday without taking any decision on the payment of a special dividend to shareholders of telecom giant Videsh Sanchar Nigam Ltd ahead of its privatisation, an official who attended the meeting said.

A decision on the dividend will be taken in the next 1-2 months, Pradeep Baijal, the seniormost bureaucrat in the divestment ministry told a news conference after the meeting.

The meeting, which was held earlier on Friday, was attended by officials of the telecom, finance and divestment ministries and had been widely expected to consider a plan to pay VSNL's shareholders a pre-privatisation dividend of Rs 100.

The government plans to bring down its stake in the New-York Stock Exchange listed overseas telephony monopoly to 26 per cent from 52.97 per cent.

This is proposed to be through a sale of 25 per cent stake and management control to a strategic partner and another 1.97 per cent to VSNL's employees.

Baijal said he expected that the decision on the strategic investor would be taken by August.

After the announcement, VSNL shares were traded at Rs 344 in afternoon deals, off an intra-day high of Rs 366.90.

Tell us what you think of this report