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L&T looking to buy Satyam?
January 20, 2009 16:51 IST
Last Updated: January 20, 2009 18:44 IST
Engineering giant Larsen and Toubro, which acquired little over four per cent stake in Satyam [Get Quote] in less than a month, is believed to have approached the government on Tuesday, evincing interest to buy the troubled IT company.
L&T Chief A M Naik on Tuesday met Corporate Affairs Minister Prem Chand Gupta, Secretary Anurag Goel and other officials, and is believed to have discussed options related to its "strategic" investment in Satyam Computer Services.
After his meeting, Naik told reporters that he was worried over his stake in Satyam, but did not disclose any further details about the meeting.
Asked if the company had informed the government about its intention to acquire Satyam, whose founder Ramalinga Raju recently disclosed a Rs 7,800 crore (Rs 78 billion) fraud, an L&T spokesperson from Mumbai said: "No comments."
On the company's four per cent stake in Satyam and if L&T was looking for a strategic fit in the IT firm, the spokesperson said: "We have a portfolio investment through L&T Capital" but declined to elaborate further.
Sources close to the development said the company was willing to explore all available options to safeguard its interest, but it was a bit too early to reach any final decision as Satyam's accounts are being scrutinised for authenticity.
Satyam director Tarun Das said on Tuesday that the company has been approached for buyout by both international and Indian IT firms. There have been unconfirmed reports that the company might soon appoint investment bankers to advise on a merger or sale.
Earlier, another board member Deepak Parekh had said that option of merger was always open for the company.
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