BT may sell its 31% stake in Tech Mahindra to TCS

BT may sell its 31% stake in Tech Mahindra to TCS
PTI
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First Published: Sun, Sep 14 2008. 02 29 PM IST
Updated: Sun, Sep 14 2008. 02 29 PM IST
New Delhi: Looking to exit from the Indian venture Tech Mahindra, British Telecom (BT) is understood to have offered its 31% stake to Tata group company TCS.
BT may be mulling to exit totally from the venture, sources close to the development said but no confirmation could be obtained either from the British entity or the Indian corporate house.
Asked if British telecom had approached with its offer to sell its total or part stake, a TCS spokesperson said “We do not comment on market speculation”.
Sources said the approach could have been driven out of synergistic angle as TCS has a thriving telecom practice and most importantly BT is a valued customer of TCS.
It is also not clear at this stage whether BT has kept Mahindra and Mahindra, the single largest stake holder with 44% share in Tech Mahindra, in the loop about its latest move.
Although the valuation of the company has not yet been done by any professional investment banker, the market cap of the company is close to $2.5 billion as per the current share price of firm.
At the close of trading on Friday, Tech Mahindra quoted at Rs759.75, down 2.42% on the BSE.
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First Published: Sun, Sep 14 2008. 02 29 PM IST