New Delhi: The government on February 5 decided to sell its stake in Indian Bharat Petroleum (IBP) to another Public Sector Undertaking (PSU) Indian Oil Corporation (IOC) while Tatas bagged government's 25 per cent stake in Videsh Sanchar Nigam Ltd (VSNL).

"IOC has emerged the top bidder for acquiring 33.58 per cent government stake in IBP. Tatas will be acquiring 25 per cent government stake in VSNL," Minister for Heavy Industries Manohar Joshi told reporters after a meeting of Cabinet Committee on Disinvestment but did not give price details.

IOC's Director Finance P Sugavanam, who along with his Chairman M A Pathan made a presentation before CCD, Chaired by Prime Minister Atal Bihari Vajpayee, later told reporters "We have got IBP stake

"Money is not a problem, everything is arranged," Sugavanam said.

Tatas and Reliance were the only two bidders who had last week given the financial bids for 25 per cent of government's 53 per cent stake in the telecom giant whose monopoly over overseas communication is slated to end on March 31, 2002.

In case of IBP, Royal Dutch Shell is understood to be the second highest bidder among seven price bids received by the government on January 31.

With the control over IBP, IOC which has a market share of 55 per cent, would have an access to over 1500 retail outlets of the stand alone marketing company apart from adding on another 5.6 per cent market share.

Reliance, which had given two bids for IBP, could not be contacted for comments after losing out on both the big ticket PSUs - VSNL and IBP.

Kuwait Petroleum, Hindusthan Petroleum and Bharat Petroleum were the other bidders in race for IBP.

As a result of IOC taking over the management control of IBP, government would effectively have control of 53 per cent stake in IBP due to its majority stake in the Fortune 500 company.

In addition to 25 per cent stake in VSNL offered to the strategic partner, government would also offer 1.9 per cent stake to employees.

PTI