HCL, TCS may swallow up Satyam: Report

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Melbourne, Jan 14: If reports are to be believed top Indian IT companies are bidding to acquire Satyam Computers. Satyam is likely be swallowed up by one of its rivals because of the billion-dollar corporate fraud scandal.

IDC the analyst firm claims that HCL and Tata Consultancy Services are the frontrunners to acquire Satyam, but second-tier multinationals such as Fujitsu, Atos Origin and Cap Gemini could also be in the running. According to The Times, IDC forecasts acquisition as the most likely outcome for Satyam.

In its report it said the key unanswered question in the corporate fraud is the role that Satyam's auditor PricewaterhouseCoopers played.

IDC believes that rival firms will be 'knocking on the door' to scoop up Satyam's customers and said there was already an opportunity for this as part of Telstra's review of its application management arrangements with Satyam.

In a table in the report, IDC valued Telstra's application management contract with Satyam at 32 million dollars, but said this expired in January 2008.

Other Satyam contracts with Australian customers listed by IDC include two custom application development (CAD) contracts with Qantas. One for $80 million over five years, expiring in Sep 2011, and another for 55 million dollars over seven years, expiring in 2013.

It has a $12 million deal to provide CAD services to Suncorp over three years, which expires in July 2010. It also has a three-year, 20 million dollar application management contract with an unnamed Australian transport company, expiring in July 2010.

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ANI

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