Tech Mahindra seeks approval for Satyam takeover

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 ®