Satyam Computer may approach CLB on Upaid
Satyam Computer Services has warned mobile solutions company Upaid that it is interfering in the Indian government-mandated strategic sale process.
By Sonali Krishna, ET Bureau |
MUMBAI: Satyam Computer Services has warned mobile solutions company Upaid that it is interfering in the Indian government-mandated strategic sale process by making statements regarding their ongoing litigation, which seek to depress the possible acquisition price, according to persons familiar with the situation.
A letter to this effect is being sent by the company���s legal advisors to Upaid and a copy will be filed with the Company Law Board. Satyam���s sale is being done under the supervision of the CLB and the company wants the board to step in and ensure that the process is not impacted.
Upaid, a UK-based mobile solutions company, had filed a case in Texas against Satyam demanding $1 billion in damages. It has accused the Indian company of forging patent documents and resorting to breach of contract for transfer of technology. Upaid CEO Simon Joyce has said in a recent media interview that his company is confident of winning the case and has strong evidence to believe that Satyam indulged in fraud, forgery and breach of contract. He went on to add that the possible implications of this case had not been properly disclosed to potential buyers and they should factor in the likely damages while determining their final bid price.
Top company officials, according to people close to them, say these statements are being made with mischievous intent to create confusion among potential strategic investors about possible liabilities as the Satyam stake-sale process reaches a decisive phase. While this case predates the ouster of Ramalinga Raju and the appointment of a board by the government, persons with knowledge of the situation say the new management has not found any instance of wrongdoing by the software firm. ���The company is confident that it will win the case. It feels that Upaid is in the business of litigation and does not have much of a case,��� said one such person.
A letter to this effect is being sent by the company���s legal advisors to Upaid and a copy will be filed with the Company Law Board. Satyam���s sale is being done under the supervision of the CLB and the company wants the board to step in and ensure that the process is not impacted.
Upaid, a UK-based mobile solutions company, had filed a case in Texas against Satyam demanding $1 billion in damages. It has accused the Indian company of forging patent documents and resorting to breach of contract for transfer of technology. Upaid CEO Simon Joyce has said in a recent media interview that his company is confident of winning the case and has strong evidence to believe that Satyam indulged in fraud, forgery and breach of contract. He went on to add that the possible implications of this case had not been properly disclosed to potential buyers and they should factor in the likely damages while determining their final bid price.
Top company officials, according to people close to them, say these statements are being made with mischievous intent to create confusion among potential strategic investors about possible liabilities as the Satyam stake-sale process reaches a decisive phase. While this case predates the ouster of Ramalinga Raju and the appointment of a board by the government, persons with knowledge of the situation say the new management has not found any instance of wrongdoing by the software firm. ���The company is confident that it will win the case. It feels that Upaid is in the business of litigation and does not have much of a case,��� said one such person.
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