Telekom Malaysia sells 3.2pct in Sri Lanka Dialog unit

KUALA LUMPUR, May 17 (Reuters) Malaysian state phone firm Telekom Malaysia Bhd has sold a 3.2 percent stake in its Sri Lankan mobile operator Dialog Telekom at 27 rupees a share, Telekom's international chief said on Thursday.

The sale is intended to increase liquidity in response to fund managers' saying there were too few Dialog shares in the market, Telekom Malaysia International Chief Executive Officer Yusof Annuar Yaacob told Reuters in a phone interview.

Telekom raised about million from the sale, Yusof Annuar said. Dialog shares stood down 1 percent at 25.50 rupees a share at 1108 GMT.

Dialog Telekom, some 88 percent-controlled by Telekom Malaysia, was listed in July 2005 and commands around 60 percent of Sri Lanka's mobile market.

REUTERS DKS RS1707