The telecom department (DoT) is considering either de-listing Mahanagar Telephone Nigam (MTNL) and then merging it into Bharat Sanchar Nigam (BSNL), or listing the latter and finalising a merger swap ratio based on the valuation of the two state-run telecom companies, with the first being the more likely option, top government officials told ET.
Indications are that consultant KPMG may be involved in preparing the merger roadmap and also doing an independent thirdparty assessment of "employee mood in both MTNL and BSNL", especially since the merger proposal has been in limbo for three years amid resistance from unions, one of the persons quoted above said. KPMG did not reply to ET's queries on the issue. ET had recently reported on DoT's presentation to Prime Minister Narendra Modi where the department had said it hoped to secure Cabinet approval for the merger of the two financially struggling state-run telcos by June next year.
BSNL-MTNL Merger: Department of Telecom weighing options - The Economic Times