• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

NEW DELHI, March 7

THE Punjab Government's attempt to privatise Punjab Communications Ltd (Puncom) has failed after the single price bid submitted by Shyam Telecom was found to be substantially below the reserve price set by the State Government.

"The State Government's Cabinet Committee on Disinvestment met in Chandigarh on Friday and rejected the lone bid submitted by Shyam Telecom on the grounds that it was not an appropriate price," Ms Vinni Mahajan, Director, Disinvestment Directorate, Punjab Government, told Business Line. She, however, would not disclose the reserve price fixed by the Government.

The Videocon group, the only other contender in the fray, had met the State Government officials on Thursday to submit a letter of regret, signalling its intention to withdraw from the bidding process.

The CCD, while rejecting the bid of Shyam Telecom, directed the Principal Secretary (Industries) to explore other ways to pursue the privatisation process in Puncom.

"The CCD also reiterated its decision to privatise Puncom," Ms Mahajan stated. The State Government had put on the block the 69.7 per cent stake held by Punjab State Electronics Corporation in Puncom to a strategic partner along with transfer of management control.

Share prices of Puncom had hit the roof on Thursday on hopes that the company would be privatised. Puncom is a debt-free entity with a net worth of Rs 182 crore.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Grasim hopeful of nod to open offer for L&T stake

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line