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'Satyam's bidding shows India's strength'

Last updated on: April 13, 2009 17:27 IST
India Inc on Friday said that the completion of the bidding process for scam-tainted Satyam Computer demonstrates the country's strength in dealing with complex corporate issues.

"The smooth completion of the bidding process for Satyam demonstrates that India has an adequate legal and institutional mechanism for handling and resolving a major corporate crisis," FICCI president Harsh Pati Singhania said.

He said the conclusion of the bidding process would help Satyam to start a new innings and redeem its reputation as a supplier of high-quality software and services internationally.

"The deft handling of the Satyam issue would send a very positive signal to the global community ... This would also rebuild whatever credibility loss there may have been for corporate India following the Satyam fiasco," said Singhania.

Assocham said the period of three months of uncertainty has come to end with Tech Mahindra winning the bid.

"It's good news not only for Satyam and its employees but the entire market as a lot of speculation was fuelled about its possible takeover in the last three months," Assocham President Sajjan Jindal said.

With this, Satyam's market value would get stabilised, benefiting its clients, employees and all stakeholders, he added. 

Welcoming the sale to Tech Mahindra, Chandrajit Banerjee, director general, Confederation of Indian Industry said that "Tech Mahindra, a Rs 3,800 crore (Rs 38 billion) company is a competent IT services provider. This would help Satyam come back to its zenith. The takeover would also immensely help Satyam regain its shareholder value and would also benefit its employees and customers."

Infosys Technologies also hailed the move."It is commendable that the government-appointed board at Satyam has been able to end the uncertainty about Satyam's future. The government has addressed the issue quickly and responsibly. Overall, it is a good thing that the issue is put behind us," S Gopalakrishnan, CEO, Infosys Technologies said.

Partha Iyengar, Head of Research, India, Gartner, says "It is imperative for the new owner of Satyam to move quickly on restoring complete confidence in clients, employees and investors.  It should project clear plans to return Satyam to its former glory, including ramping up investment in growth initiatives.

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