BSNL and MTNL’s opinions differ on merger

16 Mar 2005

The Indian government’s plan for a merger between Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) has provoked varying reactions from the two state-run telcos. BSNL management officials have said that they favour the option of making MTNL a subsidiary of BSNL, whilst MTNL recently told newspaper The Times of India that it does not fully support BSNL becoming its parent, because it would ‘defeat the purpose of building synergies between the two’. Next week, top officials from both companies are due to meet the government to discuss the available merger options. The options have been detailed by consultancy ICICI Securities (I-Sec) in a report submitted to the government. The State currently owns 100% of BSNL and 56.25% of MTNL.



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