CGD meet likely in mid-June to approve BPCL advisor

NEW DELHI: The government is likely to finalise by the third week of this month, the advisor for disinvestment of Bharat Petroleum Corporation (BPCL) for which over half a dozen merchant bankers are in the race.
According to sources involved in the disinvestment process, a meeting of Core Group of Secretaries on Disinvestment (CGD) may be held sometime in the middle of this month for clearing the name of advisor for BPCL disinvestment following which the matter would come up before Disinvestment Minister Arun Shourie for approval.
Sources, however, did not comment on reports of D S P Merill Lynch and I-sec-UBS Warburg combine emerging as the front runners for managing the proposed domestic and ADR issue of BPCL.
Keeping in line with its plans to offload 10 per cent of its 66.2 per cent stake in the company through a domestic offer and 25.20 per cent stake through American Depository Receipt, Government in March invited bids from merchant bankers with specific expertise in disinvestment through capital market offerings to act as global co-ordinator and advisor.
In addition, 5 per cent stake would be offered to employees in the Corporation at concessional rates.