We are not disappointed with the outcome. Satyam came up as an unexpected opportunity. We were dealing with a situation where the accounts of the company were not certified," said D. Morada, spokesman, L&T, which is currently Satyam's largest shareholder.
"We expect that the new owner (Tech Mahindra) will increase the value of the enterprise and consequently an increase in the value of our holdings," Morada said,"We plan to hold onto our current 12 percent stake in Satyam Computer," said Y.M. Deosthalee, CFO, L&T, adding that Larsen & Toubro would continue to pursue other growth opportunities.
L&T was considered a frontrunner in the race to acquire 51 percent stake in Satyam. However, on Monday, when the financial bids submitted by the shortlisted bidders were evaluated, it was found that Tech Mahindra had submitted the highest bid of Rs.58 ($1.16) per share, an offer that represents a 23 percent premium to Satyam's last closing share price (Thursday closing). Other suitors like engineering conglomerate Larsen & Toubro and American vulture investor Wilbur Ross had reportedly placed much lower, conservative bids at Rs.45.90 per share and Rs.20 per share respectively.
Spice Group, Cognizant Technology Solutions, IBM and iGate Corp. were among the confirmed names that showed an initial interest in Satyam but subsequently dropped out of the race.
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