2 firms shortlisted for AI global advisor

JUNE 30: Two major consultancy firms were today shortlisted by the government for global advisor GA for privatisation of Air India, offi...

JUNE 30: Two major consultancy firms were today shortlisted by the government for global advisor GA for privatisation of Air India, official sources said here.

The two firms, whose names were not disclosed, were chosen from a total of four companies which had bid for the post, which entails advising the government on the entire process of disinvestment and selection of a strategic partner for the national carrier, the sources said.

The four firms are J M Morgan Stanley, Lazard Capital jointly with SBI Caps, Solomon Smith Barney and Sumitomo Bank with Industrial Development Bank of India. The financial bids of the two shortlisted companies would be opened shortly and a decision will be taken very soon, the sources said.

While three of these firms made their presentations yesterday before a panel of officials from Department of Disinvestment, Ministries of Finance and Civil Aviation, besides Air India, the fourth one presented their case today, the sources said, adding that two of these firms were shortlisted on that basis. The bids for presentation were opened on June 26.

Meanwhile, the Air-India Employees Guild AIEG today described the move for privatisation as inevitable, but said that to protect the interest of the employees after the strategic partner comes in with the capital, it will demand representation in the newboard.

8220;We will continue the co-operative approach,8221; AIEG general secretary George Abraham told newsmen here. He said that the new strategic partner must recognise and 8220;protect collective bargaining, trade union rights, service conditions and emoluments.8221; He described the proposal for employees stock option plan ESOP as a healthy sign and hoped that the employees will be benefited after the disinvestment process is complete.

Abraham, however, blamed the government for the current state of the national carrier and said that there was too much interference by the government officials in the day to day work of the airline and for every small decision the managing director has to rush to new Delhi. 8220;Most of the time of the top management goes in answering the queries of various parliamentary committees and commissions,8221; he alleged.