L&T, M&M, Spice Corporation in race for Satyam

12 March 2009

Engineering and construction major Larsen & Toubro Ltd, utility vehicle maker Mahindra and Mahindra and Spice Corporation remained in the race for a 51 per cent stake in fraud-hit information technology major Satyam Computer Services as the deadline for submission of expressions of interest expired at 5 pm today.

L&T Infotech and Tech Mahindra, the technology outfits of engineering and construction major Larsen and Toubro, utility vehicle maker Mahindra and Mahindra and telecom software maker Spice Corporation have sent letters of intent to participate in the bidding process for Satyam Computer Services Ltd while HCL Tech and the Hindujas have chosen to stay out of the bid process.

"Once the company receive the RFP (request for proposal) it will evaluate and conclude on next step," Tech Mahindra said in a statement.

L&T is currently the largest single shareholder in Satyam.

Satyam, which is in the midst of a Rs7,000-crore corporate fraud, has invited expressions of interests from the potential bidders after its government-nominated board got regulatory approval from the Securities and Exchange Board of India (SEBI) approval to sell 51 per cent stake to a strategic investor.

The board of Satyam Computers will meet later today to select a potential bidder after registrations for potential bidders closed at 5 pm today.
Registering expressions of interest does not necessarily mean that the company would appear in the final bidding process.