L&T, Spice, Tech Mahindra in race for Satyam; iGate opts out

20 March 2009

Larsen & Toubro, Spice Group and Tech Mahindra are expected to have submitted bids for a 51 per cent equity stake in fraud-hit Satyam Computer Services even as US-based iGate Corp said it would not proceed as a deadline passed.

Larsen & Toubro, which holds 12 per cent stake in Satyam, declined to comment on its position.

Tech Mahindra has put in its formal bid along with proof for cash availability of Rs1,500 crore for acquiring a majority stake in Satyam.

"Our bid price will depend on the kind of information we get and we will factor in the liabilities in the bid price," Spice Group chairman BK Modi said.

He was referring to the legal liabilities of New York-listed Satyam Computer Services arising from class action lawsuits filed in the United States.

Registered bidders were required to submit a detailed expression of interest and show availability of at least Rs1,500 crore ($300 million) by 5 pm on Friday to stay in the race.