Indian outsourcing services provider Satyam has today announced that fellow Indian company Tech Mahindra has been selected to take a controlling stake in the company which has been beleaguered since news of over stated profits came to light earlier this year.
Kiran Karnik, the chairman of the Satyam board said, "This event ought to dispel the anxiety of all stakeholders as it repositions the company's commitment to revival and good governance." Many leading CIOs in the UK and across the world use Satyam for application development, including Tania Howarth at Birds Eye Iglo and global airline Qantas."We hope this will infuse greater confidence and comfort amongst customers," Karnik said.
Satyam sought a buyer for the controlling stake through a bidding process, which Karnik described as "open and transparent". The bidding process was approved by the Securities Exchange Board of India. Karnik said no other bid came within 90 per cent of the offer made by Tech Mahindra.
Bidders did not have access to the accounts of Satyam due to these being restated after the January revelation that the co-founder of Satyam B Ramalinga Raju had been over stating the profits for several years. As a result the Indian government suspended the Satyam board and nominated a new one to ward off the company collapsing.
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Satyam stays in Indian hands as bidding process ends
Board of Satyam look to reassure CIOs that the future is on a sound footing
By CIO UK Staff | Published: 17:08 GMT, 13 April 09 | CIO UK
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