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Tech Mahindra wins Satyam bid
No scope to reduce lending rate: PNB
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HC quashes Tata Power’s plea on Sasan coal diversion
Honda for responsible marketing of bikes
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Mumbai, April 13 The telecom software major has paid Rs 58 for a 10-rupee share for subscribing to 30.27 crore shares of the fraud-hit IT company, representing a 31 per cent stake of the total share capital. “Pursuant to the share subscription agreement, Tech Mahindra has agreed to subscribe to and acquire 30.27 crore shares at Rs 58 per share thereby agreeing to infuse Rs 1,756 crore ($351 million),” a Satyam statement said. Mumbai-based Tech Mahindra, where Mahindra and Mahindra is a promoter with a majority stake and BT has 30 per cent, is a key player in telecom software. Commenting on the development, Tech Mahindra said its subsidiary Venturebay Consultants had emerged as the highest bidder to acquire a controlling stake in Satyam subject to the approval of the Company Law Board. After getting CLB approval, Satyam Computer will ask Tech Mahindra to make an open offer for another 20 per cent in the company, which if fully subscribed in the first round, will take its stake to 51 per cent. If not subscribed fully by the existing shareholders, there could be a second round of open offer. Tech Mahindra is required to deposit the initial subscription amount and the requisite escrow amounts for the public offer on or before April 21. If Tech Mahindra desires to take control of the affairs of the company simultaneously with the preferential allotment, it will be required to deposit in escrow the total funds necessary to consummate the public offer, Satyam said. The company was administered by a new board appointed pursuant to the orders of the CLB dated January 9. The process to select a strategic investor has reached this significant stage within three months of the board’s first meeting. “On behalf of all Satyamites and their families, we congratulate Tech Mahindra on being the highest bidder. The selection of the highest bidder, in a fair, open and transparent process, signals a new stage for the company in its progress towards stabilisation and growth,” Satyam said in an announcement. — PTI
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Satyam goes for one-tenth of pre-scam price
Mumbai: Once quoted at a price of Rs 542 per share, Satyam Computer today went under the hammer for Rs 58 a share - about one-tenth of the level the IT company enjoyed about a year-ago, when no one had any inkling about the scam being perpetuated there.
Tech Mahindra, which emerged as a winner in the race to acquire fraud-hit Satyam Computer, has bid the highest price of Rs 58 per share and would have to shell out an aggregate of about Rs 2,889 crore for 51 per cent stake in the company. Based on the bid price, market capitalisation of the expanded equity base of Satyam would be around Rs 5,600 crore. Months before the scam at Satyam had come to light with confessions of its founder and former chairman B Ramalinga Raju, the Satyam scrip had hit a 52-week high of Rs 542 in May last year. The IT firm's market capitalisation had been over Rs 36,600 crore at that time. After the confession, the scrip had plunged to a low of Rs 6.30 on the National Stock Exchange on January 9. The market valuation of the firm had fallen to a low of just Rs 404.33 crore based on the Rs 6.30 share price. Besides, the current valuation of Satyam at the sale price of around Rs 5,600 crore is just about one-sixth of its last year's market capitalisation.
— PTI
Headcount is 48,000 now
Mumbai: Fraud-hit Satyam Computer, which will soon have a new owner in Tech Mahindra, has lost about 5,000 employees during September-March period of the past fiscal.
"At the end of Q4, the company's employee strength was 48,000. Out of these, 43,500 were of Satyam Computer stand-alone, and the rest is subsidiaries, contractors and sub-contractors," chairman of the government-appointed board of Satyam Kiran Karnik said after announcing the highest bidder for acquiring 31 per cent in the IT company. However he added that at the end of second quarter, Satyam had 53,000 employees. "In Q3, about 2,000 associates left Satyam making it 51,000. When the government-nominated board took stock of things, it was 51,000 comprising of 45,000 Satyam's stand-alone employees and the remaining from subsidiaries, contractors and sub-contractors," he added. Satyam Computer went through difficult phase after its former promoter B Ramalinga Raju admitted to account frauds.
— PTI
Bidding process shows our strength: India Inc
New Delhi: India Inc today said the completion of the bidding process for scam-tainted Satyam Computer demonstrated the country's strength in dealing with complex corporate issues.
“The smooth completion of the bidding process for Satyam demonstrates that India has an adequate legal and institutional mechanism for handling and resolving a major corporate crisis,” FICCI president Harsh Pati Singhania said. He said the conclusion of the bidding process would help Satyam to start a new innings and redeem its reputation as a supplier of high-quality software and services internationally. “The deft handling of the Satyam issue would send a very positive signal to the global community ... This would also rebuild whatever credibility loss there may have been for corporate India following the Satyam fiasco,” said Singhania. Assocham said the period of three months of uncertainty had come to end with Tech Mahindra winning the bid. “It’s good news not only for Satyam and its employees but the entire market as a lot of speculation was fuelled about its possible takeover in the last three months,” Assocham president Sajjan Jindal said. With this, Satyam's market value would get stabilised, benefiting its clients, employees and all stakeholders, he added.
— PTI
Will give winner broader service canvas: Nasscom
New Delhi: Software services association Nasscom today said the acquisition of Satyam will give Tech Mahindra a broader foothold in terms of service offerings and vast
geography.
“Tech Mahindra has a large base in Europe. Satyam will give it a very good opportunity to gain foothold in other geographies and many new verticals,” Nasscom president Som Mittal said. He said there was a very little overlap between both companies in terms of verticals which should hasten the process of integration. Mittal lauded the role of government, industry and the Indian IT companies in working towards the resurrection of Satyam. “Everybody has worked to the moment. The government has acted on time to appoint a board, while then industry maintained restrain in not poaching the clients and employees of Satyam,” he said. For the first time, “We saw within 100 days of the announcement of the fraud, a permanent solution has been carved out.” Zensar Technologies CEO and former Nasscom chairman Ganesh Natarajan said it was a good move as they would bring the much needed stability to the company and the customers. Tech Mahindra would acquire the stake in an all-cash deal, followed by an open offer for a 20 per cent stake to take management control of the company.
— PTI |
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No scope to reduce lending rate: PNB
New Delhi, April 13 On the 115th foundation day of the second largest PSU bank, bank chief said with a tie-up with SMC Global Securities in the North and Networth Stock Broking in western region, the bank aims to provide customers with more products in financial sector. PTI adds: On the issue of taking over of PNB Gilts, Chakrabarty said the merger has to be discussed with shareholders of both companies. “This is all the process. That process is going on. Both shareholders have to agree. Without that merger cannot take place," he said. "This is a time consuming process. I hope the merger would be complete in another 6-12 months," he added.
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GM asked to prepare for bankruptcy filing: Report
Washington, April 13 GM is operating under emergency US government loans. It has been told by the Obama administration's task force overseeing its bailout that it must cut costs and reduce its debts in order to continue to receive aid. The White House-appointed autos task force has given GM 60 days to come up with a restructuring plan and it is trying to determine whether the automaker can be a viable company. Quoting sources, the Times said the goal was to prepare for a fast “surgical” bankruptcy. The newspaper said preparations were aimed at assuring a GM bankruptcy filing was ready if the company was unable to reach agreement with bondholders to exchange roughly $28 billion in debt into equity in GM and with the United Automobile Workers’ union. A plan under consideration would create a new company that would buy the “good” assets of GM after the carmaker files for bankruptcy, The Times said. Less desirable assets, including unwanted brands, factories and health care obligations, would be left in the old company, which could be liquidated over several years, according to the paper. Treasury officials are examining one potential outcome in which the viable GM enters and exits bankruptcy protection in as little as two weeks, using $5-7 billion in federal financing, a person briefed on the matter told The Times. The Times sources declined to be identified because they were not authorised to discuss the process. Both GM and the Treasury Department officials declined to comment, the paper said. — Reuters
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HC quashes Tata Power’s plea on Sasan coal diversion
New Delhi, April 13 Observing “suppression of material facts” by the petitioner before the court, a division bench comprising Justice Madan B Lokur and Justice Siddharth Mridul dismissed Tata Power's petition. The bench also noted that there is nothing on record to suggest that the empowered group of ministers, which allowed Reliance Power to divert coal, did not act in public interest. Tata Power said it would move the Supreme Court against the Delhi High Court's dismissal of its petition. “We would be filing an appeal before the Supreme Court as we strongly believe that the issue has larger national ramifications," Tata Power said in a statement. The bench observed: “We are in agreement with the Additional Solicitor General as well as Reliance Power that the petition filed by Tata Power should not be entertained because of suppression of material facts”. The court consented with the Centre, which had submitted that Tatas were aware that the incremental coal might be used for other projects. The letter by the Centre dated November 20, 2006, on diversion of coal is very much in existence and was very much in the knowledge of Tata Power, it could not have proceeded on the basis that it did, as stated in the rejoinder affidavit, the court noted. “In view of this we have no option but to hold that Tata Power has not come to court with a full and complete disclosure of relevant and material facts,” the court said. The court also observed that Tata Power, which was also in the race for Sasan UMPP, left the bidding process in between and hence it has no locus standi in it. “We have no doubt that Tata Power can not be described as person aggrieved and there does not have any locus standi by not having done so it signaled its intention not to complete the race and, therefore, its is hardly any relevance", the court said. — PTI
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Honda for responsible marketing of bikes
Chandigarh, April 13 HMSI had launched two variants of superbikes - CBR1000RR Fireblade and CB1000R - in February. The company is currently making bookings for retailing these bikes and the deliveries will begin this month. These superbikes can be driven at a speed of 300 kmph and will currently be imported as completely built units from the Honda facilities in Italy and Japan. These bikes will be available for Rs 9.5-12.5 lakh. Naresh Kumar Rattan, operating head (sales and marketing), HMSI, said they would be training all buyers of these superbikes at their factory in Manesar. “We have created a race circuit within the factory premises. Our staff has already undergone a specific training in Singapore and they will now be training the buyers of superbikes for driving and cornering, besides teaching buyers how to dislodge from a bike in case of emergency,” he said. Rattan said these superbikes would be retailed in special showrooms called Honda Wing World- which will be opened in Delhi and Mumbai. “We will also be renting some space in Mumbai, where we will be setting up a race circuit to train bikers for these superbikes,” he said.
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Sun Pharma gets USFDA nod Re up 14 paise Holiday fares
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