The board of directors of Videsh Sanchar Nigam Ltd (VSNL), India's overseas telephony monopoly, will meet on December 14 to consider an interim dividend for 2001-02, the Bombay Stock Exchange (BSE) said on Tuesday. Last month, Disinvestment Minister Arun Shourie said government officials were working on a plan to distribute VSNL's cash reserves -- worth Rs 40-45 billion -- through a special dividend to shareholders before its privatisation. The government, which holds a 52.97 per cent stake in VSNL, plans to bring its holding down to 26 per cent by selling a 25 per cent stake and giving management control to a strategic partner and selling another 1.97 per cent to VSNL's employees.
The New York Stock Exchange-listed telecom giant already declared in July a dividend of Rs 50 per share, including a special dividend of Rs 40. Ahead of the announcement, shares of VSNL closed up 0.8 per cent at Rs 230.30 at the BSE, while the benchmark 30-issue Bombay index fell 0.69 per cent. Bureau Report