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How Tech Mahindra won the Satyam bid

April 13, 2009

Ending the three-month ordeal of about 50,000 employees, Tech Mahindra on Monday emerged as a top bidder with an offer of Rs 58 a share for a 31 per cent stake in beleaguered Satyam Computer, beating a strong rival Larsen & Toubro

Tech Mahindra would acquire the stake in an all-cash deal, followed by an open offer for a 20 per cent stake to take management control of the company.

No immediate comment could be obtained from either Tech Mahindra or L&T.

After evaluating the bids, the government-appointed board of Satyam Computer on Monday announced that "its board of directors has selected Venturbay Consultants Private Limited, a subsidiary controlled by Tech Mahindra Limited as the highest bidder to acquire a controlling stake in the company, subject to the approval of the Company Law Board."

Image: Shadows of Satyam Computer Services' logo seen at the entrance of a Satyam office building. (Inset) Tech Mahindra CEO Vineet Nayar. | Photograph: Krishnendu Halder/Reuters