According to news reports, the merger of BSNL and MTNL could be delayed beyond the government’s target of mid-2005. This is because various options are being considered, including an initial public offering (IPO) by BSNL before the merger. An IPO by BSNL before the merger appears to be the simplest way of merging the two entities. Other options, such as delisting of MTNL or the reverse merger of BSNL with MTNL, that are being explored appear to be more complicated and time-consuming. The delisting of MTNL may be a difficult proposition as MTNL is a listed company on both Indian and international bourses. Thus, approval from both Indian shareholders and ADR holders would be required for any move that affects MTNL.
