Tech Mahindra, the information technology arm of auto and farm equipment conglomerate Mahindra & Mahindra (M&M), has emerged as the top bidder for struggling Hyderabad-based outsourcing company Satyam Computer Services.
Tech Mahindra won the auction for a controlling stake in Satyam Computer Services. Tech Mahindra, which is partly owned by British telecommunications group BT , will pay $353m for a 31 per cent state in Satyam, which is still reeling from an accounting.
Satyam Computer Services Ltd.’s American depositary receipts fell the most in three months in New York trading after Tech Mahindra Ltd . won the bidding for control of the software exporter. Satyam ADRs declined 14 percent to $2.29 at 1:54 p.m. in New York.
Scam-hit IT major Satyam has informed that its board of directors has selected Venturbay Consultants Pvt. Ltd., a subsidiary controlled by Tech Mahindra Ltd. as the highest bidder to acquire the controlling stake in the company. However, the decision is yet subject to the approval of the Company Law Board (CLB).
Tech Mahindra, which Monday agreed to acquire a controlling stake in Satyam Computer Services, admitted the crisis-ridden IT firm’s liabilities would add to the challenges usually related with an acquisition.
Tech Mahindra, a venture between the BT Group and the conglomerate Mahindra & Mahindra, is poised to become an outsourcing giant after submitting the top bid for Satyam.
Tech Mahindra becomes the 4th largest IT company in India overnight by buying 51% share of Satyam Computer Services. Tech Mahindra Ltd. won the bidding for control of Satyam Computer Services Ltd.
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