Ending three months of suspense, dark horse Tech Mahindra today become the new owner of fraud-hit IT blue chip Satyam Computers.

It was the top bidder with an offer of Rs58 a share for a majority stake in the IT outsourcer, edging out  its nearest rival Larsen & Toubro Ltd. Investment firm W L Ross & Co and Cognizant Technologies of the US were also reported to have submitted bids.

Vineet Nayyar, Tech Mahindra's vice chairman and CEO was quoted as saying that the company carried out a fair assessment of Satyam's legal liabilities arising out of the class action suits in the US and pending cases while pricing the bid.

Tech Mahindra will acquire the stake in an all-cash deal, which represents a 23 per cent premium on Satyam's last closing price. This will be followed by an open offer for a 20 per cent stake to take management control of the company.

After evaluating the bids, the government-appointed board of Satyam on Monday announced that it had selected Venturbay Consultants Pvt Ltd, a subsidiary of Tech Mahindra Ltd, as the highest bidder to acquire a controlling stake in the company, subject to the approval of the Company Law Board.

"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.

The CLB expects Satyam to file for approval of the winning bidder in two or three days, and the approval should not take more than 24 hours after filing, CLB chairman S Balasubramanian told reporters in New Delhi.

Under the terms of the bid, Tech Mahindra will have to pay Rs1,757 crore for a fresh isue of a preference stake of 31-per cent stake, that will take Satyam's market capitalisation to Rs5,666 crore on the expanded equity.

To acquire the entire 51-per cent stake that includes the mandatory open offer for a 20-per cent stake, Tech Mahindra will have to pay a total of Rs2,890 crore.

Meanwhile, unsuccessful bidder Larsen & Toubro, which had built up a strategic 12-per cent stake in Satyam Computer Services, plans to hold on to its stake, its chief financial officer said on television channel NDTV Profit. (See: L&T trebles Satyam stake to 12 per cent as iGATE shows interest)

The Satyam acquisition will help Tech Mahindra diversify its software services business, and compete aggressively with bigger rivals such as Tata Consultancy Services, IBM, Infosys and Wipro.

Satyam, which serves customers such as General Electric, General Motors and Ford, will also help Tech Mahindra acquire a better portfolio of customers.

Satyam has a 46,600-strong work force and land assets of Rs450 crore, besides the order book position. Its liabilities include the legal liabilities arising out of the class action suits filed by shareholders in the US, besides any liability arising out of the tussle with UK-based mobile payments services provider Upaid.

Analysts have said Satyam looks attractive due to its long list of marquee clients and after a plunge in its market value caused by the accounting fraud perpetrated by its founder and chairman, B Ramalinga Raju. However, they are unsure how to value the company due to uncertainty about its accounts and legal liabilities arising from lawsuits filed in the United States by its shareholders.

In October, Satyam had said it had around 53,000 employees and more than 600 clients including GE, Cisco Systems and Qantas Airways. It has not reported results since releasing July-September figures in October. Its accounts are in the process of being restated.