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Thursday, July 19, 2018

Suitors lining up for scam-hit Satyam

Larsen and Toubro is believed to have approached the govt evincing interest to buy out Satyam.

Written by Agencies | New Delhi | Published: January 20, 2009 8:15:43 pm

Satyam Computer on Tuesday appeared headed for a possible sale as two leading corporates – Essar and L&T – are believed to have evinced interest in buying whole or part of the crisis-hit IT firm,while a director said offers have come from both Indian and foreign companies.

Engineering major Larsen and Toubro’s chief A M Naik today approached the central government on the Satyam issue,while Essar group has also submitted a proposal entailing a buyout of the IT firm’s BPO arm.

L&T is present in IT business through L&T Infotech and has recently purchased a little over four per cent stake in Satyam,while Ruias-promoted Essar’s presence in IT-related business is through its outsourcing arm Aegis.

After meeting with Corporate Affairs Minister Prem Chand Gupta,Secretary Anurag Goel and other officials here,Naik said he was concerned about his investment in Satyam,but did not give any further details.

Sources close to the development said L&T was willing to explore all available options to safeguard its interest,but it was a bit too early to reach any final decision as Satyam’s accounts are being scrutinised for authenticity.

Asked if the company had informed the government about its interest in Satyam,whose founder Ramalinga Raju recently disclosed a Rs 7,800 crore fraud,an L&T spokesperson said: “No comments.” Asked if L&T was looking for a strategic fit in Satyam,he said: “We have a portfolio investment through L&T Capital.” Sources said Essar has submitted a proposal for Satyam’s BPO business.

Separately,Satyam director Tarun Das said the company has been approached for buyout by foreign and Indian IT firms.

Unconfirmed reports suggest that the company might soon appoint investment bankers to advise on a merger or sale.

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