Citigroup hikes VSNL stake to 6.3%

Citigroup, the world's largest financial services company, and its affiliates have scaled up their stake in Indian Internet and telecommunications major Videsh Sanchar Nigam (VSNL) to 6.3% from 1.5%.

After the acquisition, Citi and affiliates hold over 18.6 million shares of VSNL.

The stake was hiked by way of buying VSNL's American Depository Receipts (ADRs) listed on the New York Stock Exchange, Citigroup said in a filing with the US Securities and Exchange Commission (SEC). VSNL officials refused to comment on the issue.

According to industry sources, the top brass of VSNL were in the US during the past couple of weeks, and were in discussions with investors. However, it could not be confirmed whether the sale of ADRs had anything to do with the meetings.

The Indian government holds around 26% stake in the company and the Tata group holds around 44%.