Sunday, April 12, 2009

Satyam gets ready for a new owner.

Satyam Computer Services is all set to get a new owner, as the board gets ready to open the final bids on Monday. This will help put the company back on track after the admission of the Rs 7,000 cr fraud by its own founder and chairman Ramalinga Raju.

The new buyer is likely to phase out the brand Satyam to help rebuild the company.Whosoever the new owner may be, it will certainly be a good buy considering the marquee client list, and the depth of experience with the Satyam staff.

The board has invoked some clauses like the winner cannot leverage Satyam’s assets and cannot sell them for a required period of time. But despite the over $100 mn in liabilities and a loss of about 40 clients in three months like State Farm Insurance, Coca-Cola, it continues to draw interest from global players like IBM, Cognizant Technologies, British Telecom, and Wilbur Ross and local players like L&T, TechMahindra and so on.

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