TechMa, Satyam merger today?
The executive leadership teams of the two companies are scheduled to jointly address a press conference at Mahindra & Mahindra’s headquarters in Mumbai. HT reports.business Updated: Mar 20, 2012 22:35 IST
Tech Mahindra and Mahindra Satyam are on Wednesday likely to put an end to the mystery over their long-pending merger. The executive leadership teams of the two companies are scheduled to jointly address a press conference at Mahindra & Mahindra’s headquarters here.
This will be the first press conference that the two companies address together since 2009, when Mahindra & Mahindra acquired the scam-hit Satyam Computer Services after its founder, Ramalinga Raju, admitted to corporate fraud.
A sources in Tech Mahindra said a merger announcement would be made. “It will be a forward movement,” he said. “They are also likely to announce a new name for the merged company.”
On Tuesday, the companies issued separate statements to the Bombay Stock Exchange to say that their respective boards would be meeting on Wednesday to consider a merger.
They will also consider the amalgamation of some of their wholly-owned subsidiaries — Venturbay Consultants, C&S System Technologies, CanvasM and Mahindra Logisoft Business Solutions — the companies said.
Mahindra & Mahindra is seeking to create a consolidated IT services powerhouse by merging Satyam and Tech Mahindra, which provide software services to clients mostly in the US and Europe.
Satyam shares rose 4.7% to Rs 74.15 at close of trading in a market that gained 0.25 per cent. Tech Mahindra shares added 4.9% at Rs 648.7.