According to reports in a business daily, the global IT giant is the front-runner to acquire Satyam.
Quoting sources close to the development, the report says that the global IT leader has begun discussions with Satyam’s government-nominated board and has expressed desire to acquire a majority stake in the company. A team of investment bankers and lawyers from the US and Europe too have been brought in to assess the size of the deal and the risks associated, according to the report. The company is also said to have already conducted an initial due diligence on some of Satyam’s major customers.
Incidentally, IBM was named one of the hostile bidders for Satyam by promoter Ramalinga Raju at the company’s December 16 board meeting. Also, Satyam named IBM as one of its key competitors in a filing to the New York Stock Exchange in February.
Recently, the minister of corporate affairs PC Gupta said that the open bids for Satyam would not be restricted to Indian companies only.
Other prominent players in the race are Larsen & Toubro (L&T), which owns 12 per cent in Satyam, and the BK Modi-owned Spice group.