`No official order on AI bid opening'

	Financial Daily from THE HINDU group of publications Wednesday, July 11, 2001

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`No official order on AI bid opening'

Ashwini Phadnis

NEW DELHI, July 10

THE financial bid for the disinvestment of Government equity in Air India (AI) is unlikely to be opened before the end of the monsoon session of Parliament which is likely to end on August 31.

Senior officials told Business Line that while there was no official order on the matter, this was the current thinking in Government.

``It is possible that the financial bid may be opened close to the date of the Parliament session coming to an end or even after the session ends. After all the only thing which the Government is keen on is that the process is finished in a smooth manner , keeping all the sections of the country happy,'' sources said.

With the disqualification of the Hindujas from the race to pick up a stake in the `Maharaja', the Tata-Singapore Airlines combine is the lone bidder left in the reckoning. However, officials were clear that the disinvestment process was still far from ov er although there was a lone bidder.

Sources indicated that apart from the opposition stalling the sell-off process, there was still a chance that the sale may not go through if the sale price quoted by the bidder did not meet with the expectations of the Government.

On the issue of providing Employees Stock Option Plan (ESOP), sources said that the route will only be followed if the actual sale goes through.

``If the deal is not sealed with the lone bidder then there is no question of following the ESOP route. However, if the entire 10 per cent stake which is on offer to the employees is not picked up by the staff, then the Government may offer more shares t o those who are willing to pick them up. But if the response to the ESOP is not good, then the Government may offer whatever percentage of shares is not picked up by the workers to financial institutions,'' officials indicated.

Besides, the Government may also look at the route of putting the percentage of shares which have not been subscribed to into a specially-created trust or fund.