VSNL to merge subsidiaries
The Financial Express — November 23, 2006

Tata Group company Videsh Sanchar Nigam (VSNL) plans to merge nearly half of its subsidiaries with itself as part of a major restructuring exercise. Currently with over 50 international subsidiaries, VSNL has already begun the process of restructuring to reduce the number of its subsidiaries to 30. The company has begun talks with tax and legal advisers to complete the restructuring plan in the next four to nine months. "The rationalisation exercise is expected to result in a simpler structure that can be managed more easily without compromising on operational efficiencies," Srinivasa Addepalli, corporate strategy head, VSNL, said here.

The restructuring exercise would be completed in about four-nine months, he added. However, he did not specify which are the companies that would be merged with the parent one. The majority of these subsidiaries have come into the VSNL fold after the acquisition of Bermuda-based Teleglobe International Holdings in February this year. These companies were formed to comply with existing laws that stipulated the formation of such country-specific subsidiaries in order to carry out operations. VSNL is the third largest player in voice traffic worldwide after AT&T and MCI. The company also provides broadband services besides operating landing stations and undersea cables.