Tech Mahindra Emerged Victorious

IT services provider Tech Mahindra is the new owner of Satyam Computer Services.

The company bid the highest at Rs 58 per share leaving behind the rivals including L&T and Wilbur Ross.

L&T seen as the most strong contender posed a bid price of 46.50 Rs and Wilbur Ross bidding with just a 20 Rs per Share.

The Fraud hit company was hit by a massive sell-off, when in January ex. CEO Mr. Ramalinga Raju declared his plot of Rs 7000 crore+ fraud in public.

Tech Mahindra will have to pay Rs 1,757 crore to buy a 31% stake in Satyam Computer Services. The IT co will have a market cap of Rs 5,666 crore on expanded equity and diversified portfolio will be an added advantage. Tech Mahindra will have to pay a total of Rs 2890 crore for 51% stake in Satyam.

The acquisition will help the company, an arm of the Mahindra & Mahindra Group, to diversify into new areas instead of just depending on the telecom sector.

L&T, on the other side is positive to hold its 12% high rate stocks and equity balances of Satyam Computers.

Satyam Bidding Process

At last 8 bidders have entered the bidding fray for the Indian Enron- Fraud hit Satyam Computer Services. Among the 8 bidders are some of the top multinational companies including L&T, Spice Comm. and Tech. Mahindra.
Tare MNC suitors, who have entered the fray through special purpose vehicle (SPV) structures in an apparent move to insulate themselves from future legal risks. The structure and exact nature of the SPVs are not clear at this stage.
The next stage in the bidding process is the submission of the expression of interest (EoI) along with proof of $300 million cash. This is supposed to happen by March 20. At this stage, the bidders will have access to a ‘broad set of numbers’, as they get ready to put in a price bid.

While L&T being the most powerful contender with nearly 1800cr+ Rs inventory to show, Spice Comm. has entered the bidding by selling its 40.8% stakes in Spice to Aditya Birla Group's Idea Cellular last year making its bid strength to increase to 2720cr Rs.
Another entrant to bidding is Tech. Mahindra which currently is not having sufficient balances
to bid and would require to raise another 1000cr+ Rs. so as to be in the bidding arena.....

Who will be David for Satyam??

You have heard a lot and read a lot more already about what is being termed as India's Enron. So I am not going to blabber about the same.

After the ongoing scam-like situation leading into the so called, Biggest Fraud in the Corporate History of Corporate India Inc., rumours, as usual, are on air for speculating observances on the selling of Satyam.

The Hyderabad based giant is in talks with L&T board for further manipulation. All things might get clear by the end of the Board Meet on 31st Jan.

Speculatuions are getting ripe as L&T(having a stake of 4.4%) has increased its stake to about 12% in the fallen Goliath. According to the Company Law, if a company acuires above 15% stake of a private firm it has the rigth to take the company under its control.

Seeing the trend L&T has started the buying and is estimated to buy a large share of 7.6% more making it a 16% stake-holder, the highest is the list.

Data provided(as per the NSE and BSE) showed that, on Friday, L&T paid about Rs 176 crore to buy 5.1 crore shares of the IT company.

The two have been in serious talks so as to prevent attrition and other misfortunes for the company. LIC, IDBI, BoB(Courtesy: Economic Times) has provided cash assistance to Satyam so that they can pay the internal customers of the company, their wages, actually!! this is hapenning and true...............