Mumbai: Larsen & Toubro Ltd was likely to present a revival plan to the board of fraud-hit Satyam Computer Services Ltd, media reports said on Thursday. Larsen was a front-runner for acquiring the Hyderabad-based outsourcing firm, the Business Standard said.
Institutional investors in Satyam such as Life Insurance Corporation and ICICI Prudential Life Insurance were supporting its bid, the paper said. Larsen, which holds about 4 per cent in Satyam, had earlier not ruled out the possibility of an alliance with Satyam once the investigations into the company's accounts had been done.
Satyam, India's No. 4 software services exporter, was plunged into crisis after founder Ramalinga Raju resigned as chairman in December 2008, revealing profits had been falsified for years and $1 billion of cash on the books did not exist.
The Economic Times, citing multiple sources in investment banking and government departments, said Larsen would put a price tag on its bid once KPMG and Deloitte had released restated results for Satyam.
The paper also said telecoms software firm Tech Mahindra Ltd, a unit of Indian tractor and utility vehicle maker Mahindra & Mahindra Ltd, had emerged as a strong contender for Satyam and was keen on taking over the entire company.
India's federal corporate affairs minister had said on Wednesday that many companies were interested in acquiring Satyam, without giving details.
Kiran Karnik, one of Satyam's new government-appointed board members, said Satyam had received notice from two large customers that they were terminating their contracts, the Hindustan Times said.
"Two large customers have given us notice on leaving but others are there and many of them have indicated that they would like to renew and expand contract," Karnik said in an interview to CNN-IBN. Karnik did not name the customers.
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