(Live Mint Aug 28 2008) The Financial Times reported on Tuesday that BT Group Plc. is considering the sale of its 31% stake in Tech Mahindra Ltd, since the holding doesn’t fit its long-term strategy. The Indian IT firm’s president of international operations, C.P. Gurnani, told CNBC-TV18, “It’s nothing that I am aware of and is definitely not on the cards.” BT itself hasn’t denied the report, saying it regularly reviews its global operations and investments. If the sale were on the cards, one good outcome would be that BT’s competitors would be more comfortable dealing with Tech Mahindra. Currently, the British firm accounts for about 65% of Tech Mahindra’s revenues. Analysts say that coupled with its high equity ownership, this leads to worries among other customers about engaging with Tech Mahindra, especially when it comes to projects where critical information is involved. Since Tech Mahindra specializes in the telecom space, some potential customers would be competing with BT. Th...
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