BT (NYSE: BT), according to two sources cited by Reuters on Wednesday, plans to sell a 5 percent stake in India-based IT provider Tech Mahindra for approximately $100 million.
Sources cited in the report said that BT will sell the IT provider's share for INR 735 (USD 13.20) to INR 790 (USD 14.19) each. This figure is 5 to 12 percent lower than its closing price of INR 834.90 (USD 14.98) on Wednesday.
Neither Tech Mahindra nor BT, which holds a 23 percent stake the company, would comment on any sale. Mahindra & Mahindra, an India-based sports utility vehicle and tractor maker, owns a majority stake in the company.
BT said it would think about selling Tech Mahindra shares if the market conditions were right.
The Reuters report went onto reveal that JPMorgan and Credit Suisse, while declining to be named because they don't have permission to speak to the press, have been appointed as advisers on the sale.
News of a possible sale of a stake in Tech Mahindra comes as BT looks to continually cut costs and weather the troubled European economy.
In particular, the Global Business services division was hit particularly hard during its fiscal first-quarter 2012. The London-based service provider reported that its Global Services unit revenues declined 5.9 percent year-over-year to £4.48 billion ($6.96 billion).
- Reuters has this article
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