Public sector telecom giant, Bharat Sanchar Nigam Ltd (BSNL), may offer its stake to a foreign firm, in case it fails to materialize its proposed IPO.

BSNL has decided to raise up to $10 billion in 2008 through an initial public offering, divesting a 10 percent stakes of the company.

However, stiff opposition from its employee unions and left parties led to postponement of IPO for an undisclosed period. Kuldeep Goyal, Chairman of BSNL told Business Standard: "Foreign partners definitely bring in some expertise that will help the company improve its performance."

However, Mr. Goyal declined to divulge the quantum of stakes the state-owned firm wants to offer a foreign firm. He said that final decision will be taken after discussing the matter with the government andthe employees' unions.

Goyal further said: "We have to talk to our employees about whether they would prefer a foreign partner or an IPO."

He said that the state-owned firm needs to improve its performance in some fields, and the foreign firm's expertise in telecom sector may improve its functioning as well as technical performance.