MUMBAI, March 30: Global telecom giant British Telecommunications Plc is understood to be considering an open offer to the shareholders of Bharti Telecom to pick up a substantial stake in the company. The offer is expected to be made in the range of Rs 95-100. The Bharti Telecom scrip closed at BSE on Monday at Rs 85.90.Bharti Telecom, which is 75-per cent owned by Sunil Mittal and associates, is the main promoter and stakeholder in several telecom ventures of the Bharti group. The company holds 80 per cent in Bharti Televentures, the key holding company in which Stet of Italy holds 20 per cent. Bharti Televentures, in turn, holds 51 per cent in Bharti Telenet and Bharti Cellular. Bharti Telenet is the licence-holder for basic services in Madhya Pradesh and cellular services in Himachal Pradesh; Bharti Cellular, in which British Telecom already holds 22.5 per cent, is the cellular services provider in Delhi.
The British Telecom's planned move is aimed at building a strong presence in the various telecomventures with Bharti. Apart from the stake in Bharti Cellular, BT also has a 50:50 joint venture with Bharti Telecom, Bharti BT, for providing VSAT services in the country.
A stake in Bharti Telecom would cement BT's position in the domestic telecom industry since this would give it an indirect stake in all of Bharti's basic services and cellular ventures. Currently, BT does not have any stake in a basic services venture in the country. Apart from its investments in cellular and VSAT projects, British Telecom also has a 50:50 joint venture with Mahindra & Mahindra -- Mahindra British Telecom -- for telecom software development.
The Bharti Telecom scrip has been rising steadily on the bourses. On Monday, it shot up to Rs 85.90 on the BSE during the first phase of the trading session and attracted the circuit filter at the same level. During the week ended March 27, the scrip moved in the band of Rs 78.15 to Rs 89. However, the counter continued to record thin volumes. On Monday, however, the volumes zoomedto 20,000 shares at BSE almost 10 times the volume recorded in the preceding few trading sessions.
When contacted, a British Telecom spokesman in Delhi categorically refused to comment on the matter. British Telecom managing director (India and Saarc) Arun Seth was not available for comment.
However, sources within the telecom industry confirmed that an open offer was in the offing. "The modalities are still being worked out. The offer price may be in the vicinity of Rs 95," a source said. Bharti Telecom manufactures telephones and markets them through a joint venture with Siemens.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
