Cabinet may consider VSNL call option issue today

Mumbai: The finance ministry has moved the cabinet to discuss the legal validity of a call option on VSNL in case the majority owner Tatas decide to exercise it.

The cabinet is likely to take up the call option issue of VSNL, where it would discuss the legal validity if the Tata group decides to raise its holdings in VSNL through a call option.

The government holds 26 per cent in VSNL after its disinvestments and Tatas have the time till February 12, to exercise the call option, official sources said.

The cabinet is looking at a scenario of the Tatas exercising their call option, which expires in February 2007, to buy out the government's remaining stake in VSNL, the call option for.