Friday, February 2, 2007

Holding company model suggested for BSNL, MTNL merger

A holding company model is being considered by the Department of Telecommunications (DoT) for the merger of public sector telecom companies Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL). ICICI Securities, ABN-AMRO, Rothschild, AF Ferguson and Desai & Diwanji were the consultants to the DoT.

The consortium of consultants has suggested that the holding company structure would be a “good immediate-term measure to try and achieve the benefits and synergies of a unified operation of BSNL and MTNL”. A professional management structure, with a board that includes government and industry nominees and employee-participation from of the merged companies, would ensure this model.

Read the article in Business Standard for more comments by the consultants.

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