Japan's DoCoMo Makes Open Offer for Tata Teleservices

[ThinkFree]

Leading Japanese mobile phone operator NTT DoCoMo Friday made a Rs. 9.49 billion ($194 million) open offer for 20 percent of the outstanding equity of Tata Teleservices Maharashtra, a part of the $62-billion Tata group.

The offer opens Jan 8 and closes Jan 27, the company said in a filing with the Bombay Stock Exchange. The Japanese company had Wednesday announced a $2.7-billion deal to acquire 26-percent stake in Tata Teleservices.

The purchase of shares by DoCoMo is subject to required approval from both the Foreign Investment Promotion Board (FIPB) and the Reserve Bank of India, the filing added.

Addressing a press conference here later, Ratan Tata, chairman of the group, said they were forging a long-term relationship with the Japanese company - one that will give customers a wide variety of value-added services.

"We hope to give together, give the public, a much wider range of products and excellent bases of service, not only in the current technologies but also in the technologies yet to come," he said.

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[INS-ANI]

The deal is mutually benefitial for both. NTT wil get sort of entry in world's fastest and second biggest telecom market. And TATA with the help of NTT can re-enter mobile manufacturing business.
Its already on priority list of TATA along with launching GSM service by 2010.