Satyam may finalise buyer by April 30
L&T, Tech Mahindra and Spice Group are seen an potential suitors for Satyam.
By ET Online and Agencies |
BANGALORE: The indicative timeline for finalising the successful bidder for fraud-hit Satyam Computer Service Ltd is April 30, the Indian outsourcing company said in a filing to the market regulator on Tuesday.
Engineering firm Larsen & Toubro, IT services firm Tech Mahindra and diversified Spice Group are seen an potential suitors for Satyam, whose board is looking for a buyer to revive the company.
New York-listed Satyam has been struggling since founder and Chairman Ramalinga Raju shocked investors in January, saying profits had been overstated for years and assets falsified in what has become India's biggest corporate scandal.
Potential bidders for acquiring a majority stake in Satyam Computer Services, including iGATE and other MNC firms such as IBM and HP, Satyam have chosen to stay away from the bidding war on concerns of Satyam���s falling revenues, dwindling margins, customer attrition and several legal liabilities in the US and India.
As reported by ET, Satyam is set to lower its reported revenues over the past seven years by at least 10-15%, according to preliminary estimates.
Around 46 customers, including State Farm Insurance and Telstra, have either snapped ties with Satyam or are in the process of shifting to rival tech firms such as TCS, Wipro and IBM that would impact future revenue streams. On its part, the company said that it had bagged orders and work extensions aggregating to $250 million over the past two months.
Meanwhile, some IT experts reckon that Satyam���s earnings may have been inflated by up to 30%. ���We expect the past twelve months revenues for Satyam to be lower by around 30-35%,��� said a person, who advises IT companies on outsourcing contracts.
Engineering firm Larsen & Toubro, IT services firm Tech Mahindra and diversified Spice Group are seen an potential suitors for Satyam, whose board is looking for a buyer to revive the company.
New York-listed Satyam has been struggling since founder and Chairman Ramalinga Raju shocked investors in January, saying profits had been overstated for years and assets falsified in what has become India's biggest corporate scandal.
Potential bidders for acquiring a majority stake in Satyam Computer Services, including iGATE and other MNC firms such as IBM and HP, Satyam have chosen to stay away from the bidding war on concerns of Satyam���s falling revenues, dwindling margins, customer attrition and several legal liabilities in the US and India.
As reported by ET, Satyam is set to lower its reported revenues over the past seven years by at least 10-15%, according to preliminary estimates.
Around 46 customers, including State Farm Insurance and Telstra, have either snapped ties with Satyam or are in the process of shifting to rival tech firms such as TCS, Wipro and IBM that would impact future revenue streams. On its part, the company said that it had bagged orders and work extensions aggregating to $250 million over the past two months.
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Meanwhile, some IT experts reckon that Satyam���s earnings may have been inflated by up to 30%. ���We expect the past twelve months revenues for Satyam to be lower by around 30-35%,��� said a person, who advises IT companies on outsourcing contracts.
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