Tata Teleservices sells tower unit stake to Quippo

Reuters
Posted: Monday, Jan 05, 2009 at 1552 hrs IST
Updated: Monday, Jan 05, 2009 at 1552 hrs IST

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New Delhi: NTT DoCoMo deal, the Japanese firm and Tata Sons, the parent of Tata Tele, will make an open offer for up to 20 per cent of listed unit Tata Teleservices (Maharashtra).

The offer was slated to open on Jan. 8, but has been delayed as India's stock regulator is yet to give its approval.

Tata Group firms own about 80 per cent of Tata Teleservices. Temasek has about 9 per cent and investor C. Sivasankaran holds 8 per cent. Sardana said they would "stay put"....

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» Not a Worthy deal for Tata

Posted by Nitin Gupta on 2009-01-07 23:50:48.05563+05:30
The strategy for valuation and other arrangements in this deal seems highly "influenced". Firstly, there is clear underevaluation of the Telecom Towers in attempt to lower down the market standard price ( forget the construction cost). Secondly, if you see Quippo's parent company's ( SREI) deal with BNP Paribas last year. There also they gained the management control despite being in the minority stake ( somewhere around 49%). I am surprised as to how Tata Teleservices agreed at such a deal.

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