The fraud hit Satyam has been auctioned. The successful bidder is Tech Mahindra.The most eligible suitor Larsen & Tu bro , backed out of the fray.
Tech Mahindra will pay 58Rs per share for a 31% stake and buy 20% from investors for the same price.Wilbur Ross offered Rs 20 and L&T Rs 45.9.Tech Mahindra has made a bold move. It has to act swiftly and consolidate Satyam in four or five weeks to gain from the purchase.The scandal tainted Satyam , does not appear attractive , as it is encumbered by potential liabilities from investors, lawsuits in the U.S and the lost reputation.
The business of Satyam is in doldrums, as it has lost contracts from 46 customers. On March 23 /2009 the United nations h as terminated its contracts. The largest auto insurer fro U.S has cancelled its order.Satyam has lost 300 of its employe. Tech Mahindra has taken a calculated risk by paying a handsome price.
Tech Mahindra may gain$1Billion revenue from this acquisition.The winning bid has to be approved by the company Lw Board, and the approval will be through n 2 or 3 days.
The thousands of employees of Satyam, the investors and customers who stayed on through stake sale will heave a sigh relief.
Satyam saga was baffling. Its rise was meteroic, its fall was still more impressive.Impresive may sound a bit odd at this context, but the brilliance of its fall and the terrific rigging by its founder was dazzling. The powerful emanation of its slander blindened the eyes, the resounding noise it created deafened the ears, and the massive manipulation paralysed the body.
The acquisition is mode of resurrection to Satyam .
Satyameva Jeyathe -quoths the Upanishad, which means Truth alone is triumphant.
Meenas Poems 