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Wednesday, October 27, 2010

UK's BT Planning To Sell Part Or Full Stake In Tech Mahindra - Sources

MUMBAI (Dow Jones)--U.K. telecommunications company BT Group PLC (BT) is planning to sell a part or all of its stake in India's Tech Mahindra Ltd. (532755.BY) and has mandated investment banker Credit Suisse Group (CS) for the deal, two people familiar with the matter said Tuesday.

"The firm [BT Group] is looking at various options to exit its current holding of Tech Mahindra," one of the people familiar with the matter told Dow Jones Newswires, without elaborating. Both people didn't want to be named.

At least two private-equity investors are keen to purchase at least a part of BT's stake in Tech Mahindra, the second person said, but didn't name the interested buyers.

BT Group spokesman Dan Thomas said the company doesn't comment on rumours and speculation.

"BT has operations and investments worldwide which we regularly review. India remains a critical market both for BT and our customers," Thomas said via email.

The U.K. company owns a 30.9% stake in the Indian outsourcing firm, he added.

India's Mahindra & Mahindra Ltd. (500520.BY) holds 42.77% of Tech Mahindra, stock exchange data showed.

Tech Mahindra spokesman Prasenjit Roy said in response to an emailed query that the company doesn't comment on market speculation.

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