Tata Comm may take over enterprise biz of TTSL

Tata Communications on Thursday said it will explore the possibility of acquiring the enterprise business of Tata Teleservices, another Tata group firm.

The development came after it was announced that Bharti Airtel will acquire consumer mobile business of (CMB) of Tata Teleservices Ltd (TTSL) and Tata Teleservices Maharashtra Ltd (TTML)'s in a debt-free, cash-free deal.

"Tata Communications proposes to engage in exploratory discussions with TTSL and TTML regarding the potential acquisition of its enterprise business," Tata Communications said in a filing to BSE.

The Board met on Thursday and has instructed the management to appoint independent advisors to "evaluate the strategic fit as well as the financial merits of the potential transaction".

"The Board will review the recommendations before making any final decision," it said.

In the normal course of operations, it looks at potential opportunities in various markets in the best interest of the company. "Tata Teleservices has built a powerful asset, serving enterprise customers in the fast-growing Indian market. We believe this would be a good fit for Tata Communications and its customers, and help to further strengthen Tata Communications' leadership position in this segment," it said.

Tata Sons chairman N Chandrasekaran had recently conceded that the group's mobile business Tata Teleservices is in a "really bad shape" and that a "tough call" will have to be taken on the business in this financial year.