The Channel logo

News

By | John Oates 21st April 2009 08:49

Tech Mahindra seeks approval for Satyam takeover

US, EU authorities think it over

Tech Mahindra, the successful buyer of Satyam, has asked European and US competition authorities to approve the takeover.

Sources told the Wall Street Journal that Tech Mahindra filed for regulator approval in Europe on Monday and would do the same for US regulators on Tuesday.

Four Tech Mahindra executives, including MD Vineet Nayyar, were invited to attend a Satyam board meeting yesterday - the four are expected to join the board as the deal closes.

The board said Satyam will keep its existing leaders, and for now will continue to operate as a standalone business.

Nayyar said Tech Mahindra had been impressed by Satyam's management and staff, and had complete confidence in their ability to restore the company's fortunes.

Tech Mahindra is a telecoms specialist and is looking to Satyam to spread its business into new markets. But the firm admitted its immediate business was to retain worried customers and win back business lost as a result of the recent crisis.

Satyam's future was put into doubt when founder Ramalinga Raju admitted inflating company profits by $1bn. He remains on remand along with his brother and two PriceWaterhouse auditors.

Tech Mahindra has also put cash into an escrow account to fund the buy.

Dutch regulators have approved Satyam's request to be delisted from NYSE Euronext.

Full statement is here ®

alert Send corrections

Opinion

Chris Mellor

How long before Blue Big HQ pulls the plug on the whole thing?

Chris Mellor

Drives nails forged with Red Hat iron into VCE's coffin
Sleep Cycle iOS app screenshot

Trevor Pott

Forget big-spending globo biz: it's about the consumer... and he's desperate for a nap

Features

Windows 8.1 Update  Storeapps Taskbar
Chinese Buffet self-service
Chopping down the phone tree to scrump low-hanging fruit
An original member of the System/360 family announced in 1964, the Model 50 was the most powerful unit in the medium price range.
Big Blue's big $5bn bet adjusted, modified, reduced, back for more
Microsoft CEO Satya Nadella
Redmond needs to discover the mathematics of trust