Tata Consultancy plans to buy stake in Deutsche Telekom unit

27 Mar 2007
00:00

India's top software exporter Tata Consultancy Services may get a minority stake in a unit of Deutsche Telekom in return for $1 billion in services, local media news, quoted by an AFP report, said

The AFP report quoted the Hindustan Times as saying that Tata Consultancy could pick up the stake in T-Systems, a unit of Europe's largest telecom firm, in exchange for executing work in software and other services worth $1 billion.

'According to highly placed sources, the barter deal will give Tata Consultancy a minority stake in T-Systems, equivalent to the value of the service contract,' the Hindustan Times newspaper said.

It said TCS would get as much as 10% in T-Systems if the deal is concluded and that talks are at an advanced stage.

TCS declined to comment on the report.

The software firm is part of Indian tea to steel conglomerate the Tata Group.

It has been scouting for acquisitions to boost its presence in Europe after making a strong presence in South Asia and South America, the report said.

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