KT Corp lining up Tata bid?

9 Sep 2004

South Korea’s dominant telco KT Corp is rumoured to be preparing a bid for a stake in India’s second largest CDMA wireless operator Tata Teleservices. According to Reuters, KT Corp is looking to expand abroad and has ‘opened the communication channel with the Tatas’. Although the South Korean incumbent controls 95% of the local calls market and 50% of the broadband market, it is looking to move into overseas markets to source fresh revenue streams. Tata is believed to be ready to sell up to 30% of the company for a cash consideration of USD865 million. It currently has more than two million CDMA subscribers.