Tech Mahindra may evaluate telecom biz of Satyam
Software company Tech Mahindra today said it may evaluate the telecom business of the Satyam Computer Services for acquisition.india Updated: Jan 07, 2009 19:54 IST
Software company Tech Mahindra today said it may evaluate the telecom business of the Satyam Computer Services for acquisition.
"We are not interested in the whole company. We may be interested in its telecom business which forms a very small part of Satyam's entire portfolio if customers want us to," the company spokesperson told PTI.
He said the interest areas for Tech Mahindra could be taking over the telecom contracts and the employees associated with the vertical.
Asked if the company has appointed any merchant banker for the evaluation process, the spokesperson said the company has not hired any external banker. It has internal bankers -- ABN Amro and Kotak Bank -- and if there is a necessity it would ask them to go for the preliminary assessment of the business. But so far it has not yet been decided as the present
situation is very volatile.
Tech Mahindra may be looking at a possibility of Lehman Brother type of an acquisition, where the investment bankers' businesses were bought by two different owners. While Barclays acquired its business in North America, it is Nomura which has bought the Asia Pacific business of the bankrupt firm, he said.
According to analysts, Satyam's telecom revenue is minuscule which makes it more attractive for Tech Mahindra as it can build on business over it.
Tech Mahindra a BSE-listed firm focusses on chasing long duration large-scale contracts in the telecom space. It recently bagged a USD 700-million deal, spanning for a five-year period, from the UK-based BT group. Auto company Mahindra &
Mahindra has 46 per cent stake in Tech Mahindra, whereas BT owns 31 per cent.
While Satyam shares was down almost 78 per cent on BSE at Rs 179.10, Tech Mahindra shares were down 14.57 per cent at Rs 247.05.