iGATE Corp, led by former Infosys global sales head Phaneesh Murthy, and Shiv Nadar-founded HCL Technologies emerged on Friday as possible knights to rescue Satyam Computer Services, but question marks hung on the distressed firm’s bleeding liabilities that could put off suitors. Private equity firms may partner a strategic takeover.
A big plus for Satyam’s employees would be iGate’s recent arrival as a respected employer in independent industry rankings. HCL’s interest is muted.
“We are interested in a dialogue with Satyam and currently are quiet keen and comfortable to acquire selective portions of the business,” Murthy said in an e-mail interview to Hindustan Times. “However, we have to wait for the new board at Satyam to evaluate all strategic options.”
HCL chief executive Vineet Nayar said that his company was open to “strategic acquisitions” but “not now”.
It is not yet clear what Satyam owes to customers, debtors and parties locked in litigation. “We need to understand liabilities fully. The liabilities may be too big,” Murthy said. “There has to be a role the government will take in terms of stop loss on the liabilities. This is the only way the transaction can happen,” Murthy said.