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Modicorp bullish over VSNL bid

The new CEO of Modicorp, Dilip Modi on Thursday said the company will be aggressive while bidding for Videsh Sanchar Nigam Limited and expressed his keenness in entering the Internet telephony business.

''We will do everything to take it, (VSNL),'' Modi said.

Modi said VSNL will be made into a cost effective company, international gateways will be set up and Internet technology would be would leveraged. ''If it (bidding) does not happen we will change our strategy.''

''Modicorp initially had no intentions to bid for VSNL because it had lot of inherent cash and assets. Now things have changed,'' Modi added.

The company had recently announced its keen interest to participate in the VSNL bidding process and has approached the department of divestment with a formal intent to acquire shares of VSNL.

Modicorp's move comes in the wake of VSNL's market capitalization of the public sector enterprise which makes the acquisition more capital efficient and affordable.

The Modicorp statement said that the company will comply with the stipulated deadlines and is willing to complete a limited due diligence in 15 working days to meet the bidding offer by the end of January 2002.

''Significant changes have taken place since the bids were first invited for VSNL, including the changes in the international long distance policy,'' Modi said.

UNI

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