Tech Mahindra to run Satyam as standalone unitBy ANI
Tuesday, April 21, 2009
Tech Mahindra Limited, which is taking over Satyamomputer Services Limited in a deal worth about 580 million dollars, has said that it would run the fraud-hit outsourcing firm as a standalone unit. Tech Mahindra said its immediate priority was to retain and win back lost clients of Satyam and the company intended to meet key customers across the world.
“On the basis of the reactions of the customers, I don’t believe this is a sinking ship. This may not be racing car yet but that is our task to make it one. But, I do believe that we are on our way to a very viable future,” said Anand Mahindra, Managing Director, Tech Mahindra Limited and Chairman Mahindra and Mahindra corporate group.
Tech Mahindra, 31 per cent owned by Britain’s BT Group, was the highest bidder for a controlling stake in Satyam at an auction last week, a deal that will see it step up to the top tier of Indian IT firms.
On Monday, the company said that it had deposited 351 million dollars for a 31 per cent allotment of new shares and for an open offer up to 20 per cent of the company at a cost of up to 231 million dollars.
Satyam has been struggling for survival since founder and Chairman Ramalinga Raju shocked investors in January, saying Satyam’s profits had been overstated for years and assets falsified in what has become India’s biggest corporate scandal.
Satyam’s government-appointed board was keen to bring in an investor to restore confidence among its roughly 50,000-strong staff and more than 600 customers, which include General Electric and Qantas Airways (ANI)