BPL Comm seeks $400-m from foreign investors

MUMBAI: In a fresh twist to the tussle between BPL Communications and its foreign shareholders, the holding firm for BPL''s GSM operations in India has filed a damage claim for $400 million against a consortium of foreign private equity funds that together have a 40 per cent stake in the firm.
The suit was filed last month in a London court.
AIG and CDC - the two biggest investors that hold a combined 24 per cent stake in BPL Communications - have been involved in a bitter judicial tussle with BPL group for close to two years now.
BPL''s damage claim is principally against these two entities. BPL Communications vice-chairman B K Syngal confirmed that the company had filed suit in a London court, but refused to elaborate on the issue.
BPL Communications is claiming that these foreign investors had worked against the interests of the company by periodically blocking several business proposals, which resulted in a loss of business opportunity and a fall in the company''s valuation.
BPL was the number one cellular company in 1999, but today it is number four, company sources said.
BPL claimed its plans for an IPO in 1999-2000 was blocked by foreign shareholders.
Subsequently, investors also blocked plans to raise funds through private placement and rights issue, depriving it of the opportunity to bid for the fourth operator licences and make strategic M&A moves.