Satyam, which is at the heart of India's biggest corporate fraud inquiry, earlier this month, announced that Tech Mahindra would be its new owner and would acquire 51 percent stake in the company through a mix of preferential allotment and public offer.
Induction of Tech Mahindra not only brings Satyam the much-needed cash infusion, but also it brings stability to the company, which has been struggling to retain its customers ever since January 7, when its founder Ramalinga Raju shocked investors by admitting to cooking the company's account books to the tune of at least $1.5 billion.
Some of those reportedly dropping Satyam were beverages and snack giant Coca Cola Co., pharmaceutical major GlaxoSmithKline (GSK), Australian telecom major Telstra, world's largest supplier of manufacturing systems and related services to the global semiconductor industry, Applied Materials, and fifth largest auto insurer in the US, State Farm Automobile Insurance.
Others like Assurant, Visa Inc., Citigroup, Merrill Lynch, Selective Insurance Group Inc., SanDisk Corp., Novartis and Caterpillar are also rumored to be reworking their technology outsourcing contracts with the company.
No comments:
Post a Comment