L&T studying permission given to Satyam to get strategic investor
By IANSFriday, February 20, 2009
MUMBAI - Infrastructure and construction major Larsen and Toubro (L&T) Friday said it was studying the go-ahead given to scam-hit Satyam Computer Services to rope in a strategic investor with a combination of fresh equity and an open offer to shareholders. L&T is now the largest shareholder in Satyam.
‘We are studying details of the Company Law Board (CLB) order,’ L&T chairman A.M. Naik told reporters here referring to the permission given to Satyam to make an open offer for a strategic partner.
‘Only after studying the details will we take a decision,’ said Naik, whose company holds 12 percent in the Hyderabad-based IT services giant, making L&T the largest shareholder.
Satyam’s woes seemed to be easing with the CLB allowing it to bring in a strategic investor Thursday and permitting it to raise its authorised equity capital to Rs.1.4 billion from Rs.800 million.
Naik added that the scenario had changed at Satyam with the company having lost ‘lots of customers’ and ‘key employees’ leaving.
The IT behemoth has been fighting to stay afloat ever since founder and former chairman B. Ramalinga Raju confessed to forging books of accounts for years and overstating profits.
