Tatas eyeing German IT company
By siliconindia | Friday, 23 March 2007, 05:00 Hrs
NEW DELHI: After having completed the successful acquisition of Corus, the Tatas are reported to be in advanced stages of talks for buying the IT business unit of German telecom giant Deutsche Telekom. According to reports by German business weekly Focus Online, the Tata Group is planning this deal through the European unit of Tata Consultancy Services and is currently studying the books of Deutsche Telekom's T-Systems unit. Incidentally, T-Systems is one of the smallest units of Deutsche Telekom; it had reported revenues of $16.6 (about Rs 73,000 crore) last year and has a total workforce of over 55,000 people. If successful, it could be the Tata Groups second deal, after Tata Steel's Corus acquisition, where it would acquire a company of much larger size. TCS had reported consolidated revenue of about $2.97 billion (Rs 13,500 crore) in 2005-06, which is below T-Systems' annual revenue in 2006. T-Systems' offerings include a full range of consulting and outsourcing services. It also provides telecom services for international carriers and corporate customers in sectors across the board. When contacted by PTI, a TCS spokesperson in Mumbai said that the report was speculative in nature, and refused to comment further.