Global majors stake in eye Bhel: CPI(M)

Noting that a vast majority of the shares earlier disinvested in Bhel were held by FIIs, including the banned UBS, cpi(m) today said centres's decision to divest 10% stake would only facilitate "back door" entry for the major global competitors into the public sector entity.

"The present shareholding pattern of Bhel shows that 22.74% of the 33% shares disinvested earlier are held by FIIs," CPI(M) deputy leader in Rajya Sabha, Dipankar Mukherjee said in a letter to prime minister Manmohan Singh.

"I sincerely hope that the government would review its decision of disinvesting 10% of its equity shares which may only facilitate entry of one of major competitors of Bhel through backdoor, either through FIIs and through their front companies in India," he said.

Disturbingly, he said one of the FIIs, UBS Security Asia has recently been barred by Sebi for one year because of its alleged market manipulation in the market crash of May 2004 and "It is reportedly holding 0.82% share in Bhel."

Observing that another FII Merill Lynch capital has 0.94% stake in Bhel, he said, "Our earlier apprehension that the major global competitors of Bhel like GE, Alstom, Siemens are eyeing for a  foothold in Bhel through FIIs, is therefore quite well founded."