Tata Sons buys over 1% stake in VSNL

Tata Sons, the holding company of all Tata group firms, has acquired a little over 1 per cent stake in VSNL, increasing its stake in the telephony and Internet major to around 5 per cent. Tata Sons has acquired around 30 lakh shares between June 28 and June 30 from the open market.

"The acquisition was line with Tata group's policy of increasing its stake to over 51 per cent to gaining a controlling stake in all listed companies. It took place during the open window period after VSNL's results, which were announced on June 26," a source in Bombay House, the headquarters of the Tata Group, told Business Standard here today.

At present, Tata Sons holds 3.64 per cent stake in VSNL, while its subsidiary Panatone Finvest holds 40.61 per cent and the Indian government holds 26.12 per cent.

The Indian promoters hold 71.27 per cent stake in VSNL, while the rest was held by financial institutions (19.14 per cent) and others including Indian public (9.59 per cent).

However, the prices of the acquisition were not disclosed. Industry analysts speculated that the acquisition price would have been the trading price of those days. VSNL shares closed at around Rs 420.55 on June 28.

This is fourth acquisition by Tata Sons in the last 9 months, the earlier being in October 2005, November 2005 and March 2006. Tata Sons had acquired a total of 12 lakh shares during the period.

Meanwhile, in a similar move Tata Sons chairman Ratan N Tata today proposed to hike the holding company's stake in Tata Steel by another 10 per cent.

Tata has said that acquisition was under the group's initiate to safeguard the Tata Steel's and shareholders' interest as the market was in a consolidation pace.

At present, Tata Sons holds 20 per cent stake in Tata Steel. The Tata steel shares rose 6.02 per cent on BSE and closed at Rs 524, after it opened at Rs 494.20 per cent today.