Citigroup increases stake in VSNL

World’s largest financial services company Citigroup and its affiliate companies have increased their stake in the Indian telecom company VSNL.

Citigroup now has a 6.3% stake in the company up from 1.5%. With this deal, they own around 18.6 million shares of VSNL.

Citigroup went ahead with their plans by acquiring VSNL’s American Depository Receipts (ADRs) listed on the New York Stock Exchange.

The news was confirmed in a Citigroup filing with the US Securities and Exchange Commission (SEC). VSNL itself has refused to comment on this new development.

Tata is the major stakeholder in this company with around 44% of the shares. Indian government still owns a minor 26% stake in VSNL.