L&T to buyout Satyam
L&T convened its board
meeting to discuss its nuclear foray and chances of buying Satyam. The board
member representing LIC, a major shareholder of L&T, also attended the
meeting. However, an L&T spokesperson said Satyam was not on the agenda
today.
“L&T is looking to submit a revival
proposal for Satyam, highlighting the credibility of the brand ‘Larsen &
Toubro’. Traditionally, L&T is an employee-friendly company and that will
help retain the Satyam employees. The company's financial strength will also
help Satyam raise funds for its working capital.”
L&T sees a lot of synergy between
the core strengths of the beleaguered software giant with that of L&T
Infotech, its unlisted information technology subsidiary. Satyam’s strength is in
enterprise resource planning (ERP) solutions, which accounted for 45 per cent
of revenues.
HCL Technologies has also
reportedly shown interest in acquiring Satyam. Like vertical, Satyam's ERP
expertise complements HCL's business. The other complementary vertical is
engineering design. "It is difficult to talk about valuations as there
needs to be a better clarity on the numbers.
HCL might try for a bargain," said an investment banker on condition of
anonymity. He also said that the recent Axon integration should not pose a
problem for HCL, as Satyam's operations are in
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