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L&T ups stake in Satyam to 12%

January 23, 2009 19:50 IST

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Hinting towards a possible takeover of Satyam [Get Quote] Computer, engineering major Larsen & Toubro on Friday raised its stake in the beleaguered IT firm to 12 per cent through open market share purchases.

An L&T spokesperson said that the company purchased additional shares from the market taking its total holding from four per cent to 12 per cent. However, he declined to comment on whether it would further raise its stake in Satyam.

L&T, which was already having a little over four per cent stake in Satyam before today's open market purchase, is reportedly in the forefront to acquire Satyam.

If L&T's stake in Satyam reaches 15 per cent, it would trigger an open offer to acquire additional up to 20 per cent stake in the IT firm.

According to bulk-deal data at the bourses, L&T purchased 3.9 crore (39 million) shares of Satyam at National Stock Exchange at an average price of Rs 34.52 per share, amounting to Rs 134 crore (Rs 1.34 billion). The additional shares purchased today at NSE account for about 5.8 per cent stake in Satyam, while shares were purchased at the BSE also.

Satyam shares on Monday surged by over 31.25 per cent to close at Rs 38.85,, while L&T declined 3.5 per cent at Rs 640.85 on the Bombay Stock Exchange.

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