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Max New York Life may evaluate stake in Satyam
BS Reporter in Chennai/Hyderabad | February 25, 2009 08:49 IST
Max New York Life Insurance Company Limited, a joint venture between Max India [Get Quote] and US-based New York Life, will evaluate whether to hike its stake in the beleaguered Satyam Computer Services [Get Quote] once a credible strategic investor comes into the company.
"If things change, we will evaluate our exposure in the company," MYNL chief executive officer and managing director, Rajesh Sud, said replying to a question here.
According to Sud, MYNL had sold most of its holding in Satyam immediately after the IT major made an aborted bid to acquire Maytas Infra and Maytas Properties for $1.6 billion on December 16, 2008. MYNL still holds 6,000 equity shares of Satyam.
"We have been very fortunate. Our investment managers were quick to take a view and exited most of our holding," he said, adding that MYNL exposure in Satyam was not substantial.
MYNL chairman Analjit Singh said New York Life would increase its stake in the company from the current 26 per cent to 49 per cent once Parliament passed the Bill on foreign direct investment.
MYNL, which achieved a year-on-year growth rate of 58 per cent in 2007-08, is expecting to grow by 45-50 per cent in the current fiscal.
MYNL has made a representation to the Insurance Regulatory and Development Authority to allow banks to sell the products of more than one insurance company. "It should be a cafeteria approach. If not, no sizable bank is currently available for us for bankassurance," he said, adding that Irda was yet to act on his representation.
New York Life Insurance president and chief executive Ted Mathas said the company was maintaining highly diversified portfolios in the US. It was also sticking to basics and always kept in mind the long-term prospects of its investment.
Mathas said the economic meltdown had also provided opportunities to narrow the gap between the top four private sector insurance companies in the country.