IBM set to buy Satyam

THE DARK SATANIC RUMOUR MILL has turned out a yarn that Biggish Blue is set to buy troubled Indian outsourced software maker Satyam.

According to the Indian Times, IBM suits have been seen chatting to what is left of the Satyam board which is not in jail or resigned.

It seems that IBM wants to buy a majority stake in the company and has despatched a team of investment bankers and lawyers from the US and Europe to have a look at the deal and see if it has legs.

The company has also been on the blower to some of Satyam's major customers to see if they are going to hang around.

This is the second time that Biggish Blue has had a crack at owning Satyam. It was one of the hostile bidders for Satyam by promoter Ramalinga Raju at the company's December 16 board meeting. Satyam claims that IBM is one of its key competitors.

The Satyam sale is being overseen by the minister of corporate affairs PC Gupta who confirmed that foreign companies would be allowed to bid for the company.

Larsen & Toubro is understood to have appointed Citibank as its investment banker in its race to acquire Satyam.

The deal would make good sense for IBM. It would give it a huge software outsourcing operation and employee base in India and Satyam's customer base which is also impressive.

True the company is not as big as its previous owners said it was, but it is still not bad. µ

L'Inq
India Times