Hindujas pull out of Satyam race

MUMBAI: The Hindujas have pulled out of the Satyam race citing the unquantifiable legal liabilities of the Hyderabad-based company.

"We would rather wait for the restated accounts and status of legal liabilities of the company. That's why we did not register today," a top Hinduja official told ET.

The official said the legal liabilities of upto $840 million makes it a big risk factor for the group to make any bid for Satyam. "Even if we get the company for free... we would think twice," the official said asking not to be quoted. The last date for Satyam suitors to register today expires today at 5 pm (IST).

The source said it would be better to sell Satyam after the company restates its accounts and settles its legal liabilities. "If we take into account the return on capital employed and the free cash flow of Satyam, then it makes the company quite unattractive," he said.