Merger deadline with BSNL pushes up MTNL share price
Moneylife Digital Team 05 September 2014
A note for the Cabinet's consideration will be drafted by April 2015 and the final merger is to be completed by July 2015
 
Mahanagar Telephone Nigam Ltd (MTNL) shares rallied on Friday to close 2.5% higher at Rs34.65, following the news about Department of Telecom (DoT) fixing 31 July 2015 as the deadline for the much awaited merger between state-run Bharat Sanchar Nigam Ltd (BSNL) and MTNL. However, this is still lower than its three month closing high of Rs38.20, which it hit on the 25 June 2014.
 
There have been long standing objections from employees of both companies to such a merger. The HR departments of both the companies will hold consulatations with the unions of BSNL and MTNL by March 31, 2015. 
 
A note for the Cabinet's consideration will be drafted by April 2015 and the final merger is to be completed by July 2015. MTNL for its part provides telecom services in Delhi and Mumbai, while BSNL offers services in the rest of the country. BSNL also owns over 60,000 mobile towers, the second largest tower-portfolio in India. Both state-run companies have been suffering losses due to increased competition from private players. 
 
MTNL closed Friday 2.5% up at Rs34.65 on the BSE, while the 30-share Sensex ended the day marginally down at 27,026. 
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