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Who will finally buy Satyam?

February 25, 2009

Satyam's board member Tarun Das said recently that six to seven companies were interested in taking over the software firm.

The initial enthusiasm of a few of the original contenders have dimmed somewhat. Here's a snapshot of the likely bidders.

Larsen & Toubro

Engineering and construction giant Larsen and Toubro, which acquired a 12 per cent stake in Satyam, is seen as the most aggressive suitor for the troubled IT firm.

L&T, in fact, has been the only firm to have categorically expressed its interest to the government in acquiring management control. It has invested around Rs 670 crore (Rs 6.7 billion) in the company so far.

However, that enthusiasm seems to have taken a knock, with L&T chairman and managing director A M Naik telling reporters in Mumbai recently that many things had changed in the last few weeks: some key clients had moved out and some key employees had also left.

L&T, however, still sees a lot of synergy between the core strengths of the beleaguered software giant with that of L&T Infotech.

"Satyam has a huge focus in the enterprise application space and the engineering segment. These two complement L&T Infotech as a large chunk of their work also comes from ERP practice," added the banker.

Text: BS Reporter

Image: L&T Infotech centre. | Photograph, courtesy: L&T Website

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