Tech Mahindra to be Satyam's new owner

Mumbai, Apr. 13 (ANI): Tech Mahindra has bought a 31 percent stake in the fraud-hit Satyam Computers on Monday.

Tech Mahindra outbid Larsen and Toubro and other companies.

Tech Mahindra made a bid of 58 rupees per share for Satyam, and is expected to pay 1757crore rupees for a 31 percent stake in Satyam.

The government-appointed Satyam Board conducted the final bidding in Mumbai this morning.

"We have entered the final stage of the bidding process, and on Monday we will conduct the financial bidding in Mumbai to find the highest bidder for a 31 percent stake in Satyam Computer," Satyam Board Chairman Kiran Karnik had said.

The interested bidders submitted their bids by 9 a.m. on Monday, after which a technical evaluation was held.

Larsen and Toubro was considered to be the front-runner in the race.

Tech Mahindra was seen as the second biggest aspirant.

Before the bidding begun, Tech Mahindra sources had said that there was no board meeting on Sunday to discuss participation and the bid price.

"In such a big step, the company doesn't wait till the eleventh hour to take a call. Whatever has to be decided, has already been decided," he said.

The Pune based company is a joint venture between Mahindra and Mahindra Limited (M and M) and British Telecommunications.

Tech Mahindra is sixth largest software exporter and second largest Telecom Software Provider in India.

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)