L&T, Spice, TechMahindra eye control of Satyam; iGate quits | business | Hindustan Times
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L&T, Spice, TechMahindra eye control of Satyam; iGate quits

Diversified business groups Larsen & Toubro, Spice Corp and Tech Mahindra submitted expressions of interest to acquire control of fraud-hit Satyam Computers, while iGATE opted out possibly for want of more financial information.

business Updated: Mar 20, 2009 21:13 IST

Diversified business groups Larsen & Toubro, Spice Corp and software maker Tech Mahindra on Friday submitted expressions of interest to acquire control of fraud-hit Satyam Computers, while iGATE opted out possibly for want of more financial information.

As the deadline for submitting formal proposals ended this evening, the suitors sent in detailed EoIs and proof that they have cash of Rs 1,500 crore. At today's price of Rs 43.90 a share, Satyam is valued at Rs 2,954 crore.

The board of Satyam Computer Services met in Hyderabad to evaluate the EoIs for acquiring a majority stake in the outsourcer. After this, Satyam would provide shortlisted bidders access to business, financial and legal information.

iGATE, a US-based company, said on Friday: "Based on further analysis, it has decided not to participate...in the bidding."

It did not give any specific reason for its decision but its CEO Phaneesh Murthy had earlier said that he would opt out if he does not get fresh financial data. Satyam's accounts are in the process of being restated by KPMG and Deloitte following founder Ramalinga Raju's admission of cooking books.

On March 12, during the registration process, Hinduja group had decided not to participate in the bidding. Officials of L&T, which owns about 12 per cent in Satyam, and Spice said they have put in the EoIs. Tech Mahindra also said it has decided to participate in the bidding.