Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel
July 23, 2001
|
|
|
|
|
|
||
|
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Wedding | Women Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel |
||
|
|
||
|
Home >
Money > Business Headlines > Report July 23, 2001 |
Feedback
|
|
|
Refer A-I divestment to House panel: CongressBS Political Bureau The divestment of Air-India appears to have suffered a political setback. Sensing that it has wrested a small victory following the government announcement to appoint two more merchant bankers for the valuation of A-I, the Congress on Sunday demanded that the entire divestment matter should be referred to the standing committee on finance. In a letter to the PM earlier this year, Congress leader P R Dasmunshi had alleged a nexus between JM Morgan Stanley, merchant bankers and global advisors to the government, and the Tatas, now the sole bidders for the airline. He repeated the charge in letters to both the PM and the divestment minister Sunday. "The presence of Morgan Stanley chairman Nimesh Kampani on the board of the Tata-owned India Hotels for a brief period points to a conflict of interest since the Tatas are the only bidders left," Dasmunshi told reporters. "Sensitive information must have been passed from them (JM Morgan Stanley) to the Tatas-led consortium," he said, seeking the immediate removal of Morgan Stanley and the reference of A-I divestment to the parliamentary standing committee on finance. "The government's decision to appoint two more merchant bankers to carry out independent valuations for A-I portrays lack of confidence about the objectivity and impartiality of the global advisor." The current "single bidder" approach will pave the way for undervaluation of A-I, he said, the airline is worth Rs 90 to Rs 100 billion against Rs 20 billion reserve price fixed by the Morgan Stanley, he said. Claiming that shareholders' agreement and share purchase agreement have been changed at this advanced stage of divestment, Dasmunsi said that the government will now have the right to appoint only three directors while the strategic partner will have the right to appoint four. "While the government had the right to appoint chairman and strategic partner was entitled to appoint the managing director in the earlier draft, the revised draft has conferred on the strategic partner the right to appoint both the chairman and the managing director," Dasmunshi said, charging that this was a sellout. He also alleged that the government has not taken steps to protect the interests of A-I employees after privatisation. Powered by YOU MAY ALSO WANT TO READ:
|
||||
