Friday, April 24, 2009

Filled Under:

No possibility of merger: Tech Mahindra to Satyam employees

The meeting between Tech Mahindra and the Satyam board is underway at Hyderabad. It is the first time that Tech Mahindra is meeting the Satyam management after the Company Law Board approved Satyam stake sale to Tech Mahindra.

However, durign the meeting Tech Mahindra indicated Satyam employees that there is no possibility of a merger between the company and Satyam anytime soon. CNBC-TV18's Kenan Machado reports.

Here is a verbatim transcript of Kenan Machado's comments on CNBC-TV18. Also watch the accompanying video.

Tech Mahindra has addressed a town hall Satyam employees and Vineet Nayyar of Tech Mahindra has indicated that there is no possibility of a merger between Tech Mahindra and Satyam anytime soon.

A crucial financial point is being discussed and one must remember that it is the first time the Tech Mahindra team is meeting the Satyam Management and it’s the crucial Rs 1,200 crore that the Raju family had lend to Satyam and its group companies. This we believe the Board had not put in as liabilities, outgoings, future outgoings or dues and that crucial point is to be discussed today.

The legal advisors of Satyam are a going to be a part of Satyam. That is something which Tech Mahindra would sort to clarify and get some more data as it is going to be the majority partner. The crucial point is that information which is being shared by Tech Mahindra could also be shared with the minority shareholders.

Another crucial point which is to be discussed today is that Satyam board member had indicated that Satyam was running a 10% excess work force and there would be a need to trim down. On the other hand, Anand Mahindra during his press conference had said that they would be not going in for largescale layoffs or at least that was the intention.


Post a Comment

Blog Archive