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Shares may be overpriced, says iGate

business Updated: Mar 16, 2009 23:17 IST
HT Correspondent
HT Correspondent
Hindustan Times
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US-based iGATE Corp said on Monday that its bid for Satyam Computer Services Ltd would be well short of the company’s current share price, triggering a fresh round of questions on the valuation of the fraud-mauled company mired in uncertainties over its financial and legal liabilities.

“(From) what we have picked up in terms of the financials, I do believe our bid will be quite a bit south of the 90 cents a share, which is currently the market price of Satyam,” Phaneesh Murthy told CNBC TV18.

Satyam shares traded 0.4 per cent lower at Rs 45.30 (88 cents) in line with Bombay Stock Exchange broad indices.

Murthy said bidding for the controlling stake would be a tough task due to the uncertainty about Satyam’s finances and liabilities arising from the class action lawsuits filed in the United States on behalf of Satyam’s shareholders there.

“I think it’s a big struggle for any public company to bid for this company,” he said.