The Hindu Business Line : Idea to finalise biz plans by month-end

IDEA Cellular Ltd plans to finalise its stake sale plan and business strategy including its capex by the month-end in consultations with its promoters — the Tata group, the Birlas and AT&T (Cingular).

The Managing Director of Tata Industries Ltd, Mr. Kishor A. Chaukar, said, "By the week-end we would decide the plan of action, following the expiry of the deadline last week of STT investing in Idea. Cingular had acquired AT&T and, as of last week, they were of the view that they would exit the venture. With the STT deadline expiring on June 11, we will meet again and, in consultations with others, decide on the course of action."

"All the options we had considered last year are open even now. These include divesting part stake, going public and even merger. We don't have the option of taking a decision in isolation. And, therefore, if one plans to exit, the other has the first option to consider or refuse the offer," said Mr Chaukar.

"Irrespective of this development, Idea Cellular continues to expand operations. With the acquisition of the Madhya Pradesh circle and Escotel, we are in the process of rolling out services in three new circles - UP West, Himachal Pradesh and Rajasthan. Though initial amounts required for the expenditure have been finalised, the overall capital expenditure for the fiscal would be decided by the month-end," he said.

On the possibility of the merger of Tata Teleservices Ltd, (Maharashtra) with Tata Teleservices Ltd, Mr Chaukar said, "We have not considered this. For us, they are one; operationally and otherwise building on the same brand Tata Indicom, even though one is publicly listed and the other has 51-per cent Tata stake."

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