Thursday, December 10, 2009

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Mahindra Satyam agrees to pay $70 mn to UK firm Upaid

Mahindra Satyam has agreed to pay $70 million to UK-based mobile payment services firm Upaid in an out-of-court settlement, ending uncertainty over one of its long-drawn legal liabilities.

In return, Upaid will drop all charges against Mahindra Satyam and also provide a royalty-free licence on its patents on a worldwide and perpetual basis. The amount is a tenth of what Upaid was seeking in damages from the erstwhile Satyam.

Investors cheered the move that will allow Mahindra Satyam to focus more on business and customer issues as sentiment veers towards an economic recovery.

“It (the Upaid case) could have been pretty intractable,” commented one analyst, terming it a positive development. Satyam shares closed 1.3 per cent higher at Rs 102.65 on BSE on Wednesday.
Source: EconomicTimes

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