Indian telco BSNL eyeing private placement-report

MUMBAI, Feb 10 (Reuters) - India is considering a proposal for a private placement of shares in state telecoms firm BSNL due to opposition from unions for an initial public offer or stake sale to a strategic investor, the Business Standard said.

The telecommunications department is working with the disinvestment ministry to privately place 5 to 10 percent of Bharat Sanchar Nigam Ltd, the newspaper reported on Wednesday, citing an unnamed government official.

The move was also prompted by the muted response to the follow-on public offering by state-run power producer NTPC Ltd , it said.

BSNL Chairman Kuldeep Goyal could not be immediately reached for comment.

The company's proposal for an IPO has been pending for almost two years after the government approved a 10 percent divestment.

(Reporting by Janaki Krishnan; Editing by Ranjit Gangadharan)

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