BUSINESS

Some action on Satyam acquisition in future: L&T

Source:PTI
January 27, 2009 11:10 IST

Amid speculations about the acquisition of beleaguered Satyam Computer Services by Larsen and Toubro, the engineering major's chief A M Naik said on Tuesday some corporate action will take place in the near future.

L&T chairman, however, declined to comment on taking over Satyam 'at this stage.'

Speaking to private TV news channel CNBC TV18, Naik said, "Some corporate action will take place in the near future but we cannot comment on taking over Satyam at this stage."

"L&T hiked its stake as initial cost of investment in the company was at risk. Initial investment was met before the account disclosure," he said.

Asked about a possible acquisition of Satyam, Naik said he could not talk about it at the moment, but added that the company was 'in touch with all decision makers.'

Last week, L&T hiked its stake in Satyam to 12.04 per cent, fuelling the speculations about an imminent takeover of the scam-hit IT firm, where its founder B Ramalinga Raju earlier this month disclosed a massive Rs 7,800 crore (Rs 78-billion) financial fraud.

We hiked stake in Satyam to protect L&T's interest in Satyam, Naik said. Post acquisition of fresh shares last week from open market, cost per share has come down to Rs 80 per share from Rs 174 per share earlier.

Satyam's government-appointed board was scheduled to meet on Tuesday to decide on various measures including tying up funds and finalising new CEO and CFO for the company.

Source: PTI
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