Talks of buyout ‘baseless’: Satyam Comp

Media reports said that three IT cos,HCL,Tech Mahindra and Cognizant,are in fray for Satyam.

Amid talks of possible suitors lining up for beleaguered Satyam Computers ahead of its board meeting on January 10,the Hyderabad-based company on Tuesday said there is no truth in these reports.

“There is no truth to the reports that have appeared in the media,” a Satyam spokesperson said in New Delhi.

Media reports said that three IT companies,HCL Tech,Tech Mahindra and Cognizant,are in the fray for Satyam.

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While a HCL spokesperson said the company does not comment on speculation,Tech Mahindra officials termed the reports as baseless. A Cognizant spokesperson said it too does not comment on speculation.

As for HCL,analysts feel the company is busy on the Axon acquisition completion and it does not have much cash on books and it has a USD 500 million debt taken for Axon.

Nasdaq-listed Cognizant had earlier acquired ‘marketRx’ for USD 135 million – a deal that had given it access to 75 customers,including all the top 20 pharma companies in the US and four of the top five biotechnology firms.

Satyam has been at the centre of intense takeover speculation ever since it aborted a deal to acquire two infrastructure companies promoted by the family of its chairman Ramaling Raju last month,which led to investor dissent.

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The company later said its promoters have pledged all their shares with institutional lenders,who may now be selling the shares in the market.