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Could Satyam’s fiasco be over after Tech Mahindra takeover?

04.18.2009 · Posted in Article Writing

The year 2009 for Satyam Computer Technologies Ltd had been full of troubles and up downs. Satyam rnrnwas plunged into a crisis in January after its founder, B. Ramalinga Raju, said that the company’s rnrnprofits had been overstated for several years. Finance professionals, however, say that the scam could rnrnnot have happened without the complicity of company auditors.rnrnrnAfter the scam in Maytas acquisition deal, Upaid Systems case, World Bank had banned Satyam from rnrndoing business with it for 8 years due to inappropriate payments to the World Bank’s staff and the free rnrnfall of its share prices, the company could not stand on its own and hence SEBI permits for soliciting rnrnbids from potential buyers.rnrnGood Old TimernThe word satyam means “truth” in Sanskrit.rnSatyam’s network covers 67 countries across six continents, employs more than 40,000 IT rnrnprofessionals across development to serves over 654 global companies, 185 of which are Fortune 500 rnrncorporations.rnrnIn 2008, the company get Asian MAKE (Most Admired Knowledge Enterprise) Award from Teleos, in rnrnassociation with KNOW Network, UK Trade & Investment India (UKTI) Business Award for corporate rnrnsocial responsibility from UKTI beside many other awards since its formation. Ramalinga Raju, the rnrnchairman named as Ernst & Young Entrepreneur of the year.rnrnBut after four months of this pull-push, on April 13, 2009, Kiran Karnik, the MD at Satyam announced that rnrnIT services provider Tech Mahindra had offered the highest bid at Rs 58 per share and become the new rnrnowner of the company.rnrnTech Mahindra: OverviewrnWith more than 25000 employees, Tech Mahindra Ltd formerly known as Mahindra British Telecom rnrn(MBT) is an Indian Information Technology service provider headquarters at Pune, India. It is the 6th rnrnlargest software exporter in India (Nasscom, 2007) and 2nd largest Telecom Software Provider in India rnrn(Voice & Data, 2007) and JV between Mahindra & Mahindra Limited (M&M) and British rnrnTelecommunications plc (BT).rnrnSatyam-Tech Mahindra dealrnTech Mahindra

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