Why Bharti Telecom's plan to "extinguish" minority shares is making investors angry

There's a mini battle brewing at Bharti Telecom, the holding company of telecom major Bharti Airtel. Its plan to "extinguish”the shares of nearly 5,000 small shareholders has drawn the latter's ire. In a relatively rare corporate manoeuvre, the privately held Gurugram-based company has issued a notice for postal ballot/e-voting, open till the end of this month, seeking shareholder approval reduction to provide an exit opportunity to small shareholders following several requests from them. Holding on to shares that are perceived valuable against odds is perceived as a virtue among small investors. This development will make them question whether staying invested for the very long term, especially defying the larger plans of a promoter-dominated company, is a wise idea.