Tech Mahindra to pay Rs 1,756cr before April 21

NEW DELHI: Tech Mahindra would pay Rs 1,756 crore before the deadline of April 21 for acquiring 31% stake in Satyam Computer for which it on Thursday got the approval from the Company Law Board.

Sources in the company said it would pay the amount before April 21 and it has already arranged most of the funds required. The company has raised Rs 875 crore from the debt market and has Rs 700 crore on its balance sheets. The rest of the amount needed, said sources, would be raised from internal resources.

"We are pleased with the honourable Board's decision. This takes us one step closer to our objectives. We look forward to complete the next steps of the bid process," Vineet Nayyar, Vice Chairman and CEO of Tech Mahindra said.

The CLB on Thursday approved takeover of Satyam Computer Services by Tech Mahindra for deal of Rs 58 a share which the company bid through auction. Satyam was which was on the verge of collapse after its former founder B Ramalinga Raju admitted fraud running into several thousands of crores.

Tech Mahindra will also have to deposit the requisite escrow amount for the 20% open offer in a separate account on or before April 21. The aggregate amount for 51% stake in Sataym is Rs 2,889 crore. It has to deposit Rs 1,133 crore in escrow account for the open offer.

Source: TOI

MELBOURNE: Australian telecom giant Telstra has reportedly dropped outsourcing partner Satyam Computer Services from an applications support contract worth 32 million Aus dollar annually.

The troubled Indian outsourcing firm's IT contracts with Telstra will be passed on to EDS, according to sources that were quoted by a 'The Australian' daily here today.

Telstra Chief Executive Sol Trujillo, who leaves the company on June 30, sat on the board of EDS before joining the telco in 2005, the report said.

According to the daily, Telstra refused to comment on the report of dumping Satyam and said the decision about its supply arrangements with individual vendors was not for media release.

'The Australian' further said that new Satyam Chief Executive A S Murty is understood to have flown to Australia last week in a last-ditch bid to retain the Telstra contract and the Indian IT company placed a compelling case to continue with Telstra.

The recent fraud at Satyam is believed to have led to the fallout, but a source close to the deal denied that the IT firm's scandal was responsible for Telstra's decision to tear up its contract, saying it was instead linked to the Indian outsourcer's performance.


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