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Tech Mahindra offers Satyam a cashless merger
By siliconindia
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Wednesday, 07 January 2009, 16:52 IST |
7 Comments
New Delhi: In the latest twist to the Satyam saga, Tech Mahindra is said to have approached IT services giant Satyam Computer Services for a cashless merger, which if finalized, may become the third-largest IT company in the country.
Investor confidence in Satyam took a beating after its aborted $1.6 billion deal for acquiring two companies --Maytas Infra and Maytas Properties that are promoted by members of the family of B.Ramalinga Raju, CEO, Satyam Computer Services leading to the stepping down of four independent directors. Senior executives at Satyam are working overtime to prevent an exodus of its top customers to rival tech firms, amid concerns over corporate governance issues and a potential change in management.
Jairam Ramesh, Union Minister of State and Commerce, had criticized the IT bigwig for having acted in contravention of all norms of corporate governance, while deciding on the Maytas takeover issue.
According to the proposed deal, the management control of the merged entity will be in the hands of Mahindra & Mahindra (M&M). Potential suitors until now, who have been in the fray include HCL Technologies, foreign companies such as HP as well as private equity funds, although so far none of these companies have confirmed their interest in Satyam.
Faced with a potentially uncertain future, employees of Satyam Computer Services have bought at least one crore shares in the last few days, following an "unofficial advisory" from the Resource Coordinators Committee (RCC) of the company.