Global IT giant IBM is learned to be leading the list of prospective buyers of beleaguered Satyam Computer Services. If the plan fructifies, IBM would become the largest IT services player in India with a combined employee strength of over 125,000 people.
According to sources close to the development, IBM officials has begun discussions with Satyam board and expressed its desire to acquire a majority stake in the company. Moreover, a team of investment bankers and lawyers from the U.S. and Europe has been brought in to assess the size of the deal and the risks associated with it. It is also believed that IBM has conducted an initial due diligence on some of Satyam's major customers.
Making easy entry for foreign players, Minister of Corporate Affairs P C Gupta had said a week ago that open bids would not be restricted to Indian players. IBM was named one of the hostile bidders for Satyam at the company's meeting in the last December. Apart from IBM, other prominent companies in the race are Larsen & Toubro (L&T), which owns 12 per cent in Satyam, and B K Modi-owned Spice group.
The government-nominated board is expected to invite bids for a 31 per cent stake in the company, but is likely to assure the successful bidder 51 per cent even if it fails to get the additional mandatory 20 per cent from the open offer.
Analysts foresee that if IBM can buy Satyam, that can give IBM the leverage to compete with Indian IT service providers as Satyam has a low-cost structure.
Agencies
Showing posts with label Satyam Computer. Show all posts
Showing posts with label Satyam Computer. Show all posts
Saturday, March 7, 2009
Friday, February 6, 2009
Will Infosys freeze recruitment, mulls pay cuts?
Employees of Infosys Technologies may have to live with a salary cut and without any significant increment, even as the IT bellwether has virtually frozen fresh recruitments on account of the global meltdown, a top company official has said.
"A part of our salary is determined by variable sales component, which is the percentage of the company's revenue," said Infosys' director for human resources T V Mohandas Pai.
"Since the revenues are down, the salaries will naturally be trimmed."
Speaking to reporters on the sidelines of a press conference here, Pai said the leading software exporter and business process outsourcing firm may also opt out of salary hikes because of the slowdown.
"The increments may not happen this year. But, if they do, they will be subdued."
Pai also maintained that the company will honour the 20,000 campus offers made last year, but added that fresh hiring has been frozen.
Infosys, India's second largest IT firm, had reported a net profit of Rs.16.41 billion ($335.5 million) for the third quarter of this fiscal, to log a 33 percent year growth. The jump was above expectations but below what it had logged in the past decade.
Speaking about the fallout of the $1.43-billion Satyam Computer Services scam, Pai said Infosys had, indeed, received offers from some customers of the rival group, which were being analysed.
"Our chief executive officer (K. Gopalakrishnan) had earlier made an announcement that we have received offers from Satyam customers," he said, adding: "But we do not go and poach on customers."
Gopalakrishnan had also said last month that there was no pro-active move on the part of his company to approach Satyam customers. "But if they come on their own, we will look into their proposals case-by-case."
Agencies
"A part of our salary is determined by variable sales component, which is the percentage of the company's revenue," said Infosys' director for human resources T V Mohandas Pai.
"Since the revenues are down, the salaries will naturally be trimmed."
Speaking to reporters on the sidelines of a press conference here, Pai said the leading software exporter and business process outsourcing firm may also opt out of salary hikes because of the slowdown.
"The increments may not happen this year. But, if they do, they will be subdued."
Pai also maintained that the company will honour the 20,000 campus offers made last year, but added that fresh hiring has been frozen.
Infosys, India's second largest IT firm, had reported a net profit of Rs.16.41 billion ($335.5 million) for the third quarter of this fiscal, to log a 33 percent year growth. The jump was above expectations but below what it had logged in the past decade.
Speaking about the fallout of the $1.43-billion Satyam Computer Services scam, Pai said Infosys had, indeed, received offers from some customers of the rival group, which were being analysed.
"Our chief executive officer (K. Gopalakrishnan) had earlier made an announcement that we have received offers from Satyam customers," he said, adding: "But we do not go and poach on customers."
Gopalakrishnan had also said last month that there was no pro-active move on the part of his company to approach Satyam customers. "But if they come on their own, we will look into their proposals case-by-case."
Agencies
Saturday, January 24, 2009
Now iGATE joins L&T, Essar, in expressesing Interest in Satyam
There seems to be light at the end of the tunnel for the fraud-ridden Satyam Computer Services. After Larsen & Toubro and Essar showed interest in buying whole or part of the Hyderabad-based IT major earlier this week, now IT major iGATE has also joined in.
The Bangalore-based iGATE Corporation, an integrated technology and operations (iTOPS) company, on Friday expressed interest in Satyam and also the board of iGATE has been meeting officials from the newly-formed board of Satyam.
Talking to CXOtoday, Phaneesh Murthy, Chief Executive Officer of iGATE, said, "We are interested in a dialogue with Satyam and currently are quite keen and comfortable to acquire selective portions of the business."
Asked about how he plans to raise the "moolah", he said the company is in touch with PE players who are ready to bring in the money.
iGATE Corp. is a Nasdaq listed company while the other entity, iGATE Global, was listed in National Stock Exchange (NSE) in Mumbai until January 2008, but de-listed from the Indian stock exchanges since.
Recently, the company announced its financial results for the fourth quarter and year ended Dec 31, 2008. Revenue for the year was $218.8 million compared to $201.7 million recorded last year. Net profit for the year increased to $29.3 million compared to $10.5 million last year. The company also added 27 new customers in 2008 showing their might in India.
Tarun Das, CII mentor and director on the Satyam board, has been saying that there were buyout offers from domestic and foreign companies, but without identifying any buyers. "Satyam has enormous fixed assets, human resource and technology assets. So, it is a very strong company. The board has not yet discussed the issue of looking for a buyer... But I have to truthfully say we have been approached by potential buyers," Das said.
Both L&T and Essar already have interest in Satyam. While L&T recently bought a little over 4 percent stake in the company, the engineering major is also into IT business through L&T Infotech. The Ruias-promoted Essar is also into IT-related business through its outsourcing firm, Aegis.
However, it is still not known where iGATE interest is. "We have to wait for the new board at Satyam to evaluate all strategic options and based on that evaluation set the direction for the company," said Murthy.
i
The Bangalore-based iGATE Corporation, an integrated technology and operations (iTOPS) company, on Friday expressed interest in Satyam and also the board of iGATE has been meeting officials from the newly-formed board of Satyam.
Talking to CXOtoday, Phaneesh Murthy, Chief Executive Officer of iGATE, said, "We are interested in a dialogue with Satyam and currently are quite keen and comfortable to acquire selective portions of the business."
Asked about how he plans to raise the "moolah", he said the company is in touch with PE players who are ready to bring in the money.
iGATE Corp. is a Nasdaq listed company while the other entity, iGATE Global, was listed in National Stock Exchange (NSE) in Mumbai until January 2008, but de-listed from the Indian stock exchanges since.
Recently, the company announced its financial results for the fourth quarter and year ended Dec 31, 2008. Revenue for the year was $218.8 million compared to $201.7 million recorded last year. Net profit for the year increased to $29.3 million compared to $10.5 million last year. The company also added 27 new customers in 2008 showing their might in India.
Tarun Das, CII mentor and director on the Satyam board, has been saying that there were buyout offers from domestic and foreign companies, but without identifying any buyers. "Satyam has enormous fixed assets, human resource and technology assets. So, it is a very strong company. The board has not yet discussed the issue of looking for a buyer... But I have to truthfully say we have been approached by potential buyers," Das said.
Both L&T and Essar already have interest in Satyam. While L&T recently bought a little over 4 percent stake in the company, the engineering major is also into IT business through L&T Infotech. The Ruias-promoted Essar is also into IT-related business through its outsourcing firm, Aegis.
However, it is still not known where iGATE interest is. "We have to wait for the new board at Satyam to evaluate all strategic options and based on that evaluation set the direction for the company," said Murthy.
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Tuesday, January 13, 2009
Will the Rs 2000 crore government package bailout out Satyam?
Speculation is rife that the government is considering a package of up to Rs 2,000 crore to bailout the crisis-ridden Satyam Computer but no confirmation could be obtained.
Shortly after the Prime Minister Manmohan Singh's review meeting on Satyam on Tuesday, there was media speculation that government would be considering a financial assistance ranging between Rs 500 crore and Rs 2,000 crore but the PMO office declined to comment on it.
"We have nothing to say on this," a top PMO official said when asked about if the government was considering giving financial aid to Satyam which is confronting a cash crisis.
Meanwhile, official sources indicated that the government appointed Satyam board has written a letter to the finance ministry raising concerns about the liquidity crunch in the troubled company.
Talking to reporters after the first meeting of the new board in Hyderabad, HDFC chairman Deepak Parekh, who is member of the board, had said "working capital issues require immediate attention and we will work with the team to tide over this situation.
Satyam has 53,000 employees and needs over Rs 500 crore a month to meet the staff cost.
Commerce Minister Kamal Nath, who attended PM's review meeting, had said yesterday that the government was open to consider a financial package for Satyam.
Agencies
Shortly after the Prime Minister Manmohan Singh's review meeting on Satyam on Tuesday, there was media speculation that government would be considering a financial assistance ranging between Rs 500 crore and Rs 2,000 crore but the PMO office declined to comment on it.
"We have nothing to say on this," a top PMO official said when asked about if the government was considering giving financial aid to Satyam which is confronting a cash crisis.
Meanwhile, official sources indicated that the government appointed Satyam board has written a letter to the finance ministry raising concerns about the liquidity crunch in the troubled company.
Talking to reporters after the first meeting of the new board in Hyderabad, HDFC chairman Deepak Parekh, who is member of the board, had said "working capital issues require immediate attention and we will work with the team to tide over this situation.
Satyam has 53,000 employees and needs over Rs 500 crore a month to meet the staff cost.
Commerce Minister Kamal Nath, who attended PM's review meeting, had said yesterday that the government was open to consider a financial package for Satyam.
Agencies
Friday, January 9, 2009
Satyam's Ramalinga Raju surrenders
The disgraced chairman of Satyam Computer Services B Ramalinga Raju has surrendered on late Friday night before the Andhra Pradesh Director General of Police, two days after he confessed to perpetrating a Rs 7,000-crore financial fraud. The CID had registered a case based on Raju's confessional statement.
B Ramalinga Raju tonight surrendered before the Director General of Andhra Pradesh Police S S P Yadav, a police spokesperson said.
"I am prepared to subject myself to the laws of the land and face the consequences thereof" Raju had said in a confessional statement.
Agencies
B Ramalinga Raju tonight surrendered before the Director General of Andhra Pradesh Police S S P Yadav, a police spokesperson said.
"I am prepared to subject myself to the laws of the land and face the consequences thereof" Raju had said in a confessional statement.
Agencies
Wednesday, January 7, 2009
Has Raju left India after admitting of financial irregularities?
Amid speculation over his whereabouts, B Ramalinga Raju, who stepped down as Chairman of Satyam Computer after admitting to financial irregularities, is believed to have left for the US in connection with a court case.
Speculation mounted tonight when a TV channel reported that Raju may have gone to Dubai.
"We have no idea of where Raju is," a Satyam spokesperson told the media over phone when asked if he had left for the US in connection with a case filed by a British Telecom solution firm Upaid.
Raju was also not reachable on his mobile phone despite several attempts, but police sources said that Raju left here for Texas this morning from the Hyderabad Airport.
Earlier in the day, Andhra Pradesh Chief Minister Y V Rajasekhara Reddy had said that he would refer the Satyam matter to CB-CID for investigation.
Upaid had filed a petition in Texas seeking details of the USD 1.6 billion dollars acquisition of two Maytas firms, promoted by Raju's family, before Satyam dumped the deal after attack from investors.
In its petition, Upaid had demanded presence of Raju and senior directors of Satyam for questioning by its lawyers.
Speculation mounted tonight when a TV channel reported that Raju may have gone to Dubai.
"We have no idea of where Raju is," a Satyam spokesperson told the media over phone when asked if he had left for the US in connection with a case filed by a British Telecom solution firm Upaid.
Raju was also not reachable on his mobile phone despite several attempts, but police sources said that Raju left here for Texas this morning from the Hyderabad Airport.
Earlier in the day, Andhra Pradesh Chief Minister Y V Rajasekhara Reddy had said that he would refer the Satyam matter to CB-CID for investigation.
Upaid had filed a petition in Texas seeking details of the USD 1.6 billion dollars acquisition of two Maytas firms, promoted by Raju's family, before Satyam dumped the deal after attack from investors.
In its petition, Upaid had demanded presence of Raju and senior directors of Satyam for questioning by its lawyers.
Saturday, January 3, 2009
Teja Raju appointed new CEO of Maytas Infra
Maytas Infra, promoted by Ramalinga Raju, Chairman of Satyam Computer Services and his sons, has appointed Teja Raju as the new Chief Executive Officer of the company. He will be assuming the role of a CEO in addition to he present charge he holds as the Vice President of the company, said a spokeswoman of the company.
The move comes close on the heels of CEO of Maytas Infra P K Madhav's arrest, for allegedly defaulting payments to investors of Nagarjuna Finance Limited (NFL) to the tune of Rs 100 crore. PK Madhav was on the Board when NFL raised money.
"PK Madhav is presently under judicial remand and Teja Raju will be the CEO of the company till the law takes course," said the spokeswoman of Maytas Infra.
Satyam Computer Services was to acquire 51% stake in Maytas Infra, but was aborted following investor's ire to call off the deal. The promotes of Maytas Infra including Ramalinga Raju and his sons hold 36.64 per cent stake in the company.
The move comes close on the heels of CEO of Maytas Infra P K Madhav's arrest, for allegedly defaulting payments to investors of Nagarjuna Finance Limited (NFL) to the tune of Rs 100 crore. PK Madhav was on the Board when NFL raised money.
"PK Madhav is presently under judicial remand and Teja Raju will be the CEO of the company till the law takes course," said the spokeswoman of Maytas Infra.
Satyam Computer Services was to acquire 51% stake in Maytas Infra, but was aborted following investor's ire to call off the deal. The promotes of Maytas Infra including Ramalinga Raju and his sons hold 36.64 per cent stake in the company.
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