L&T may team up with buy-out firms for Satyam bid: report

17 March 2009

Larsen & Toubro is in talks with private equity firms such as Blackstone and The Carlyle Group, Goldman Sachs, Kohlberg Kravis Roberts & Co and Singapore's Temasek, to jointly bid for 51 per cent stake in Satyam Computer Services, reports citing sources close to the development said.

The engineering and construction major, however, refused to confirm the reports, saying those are purely speculative.

The reports also said in case L&T opts to bid jointly with private equity firms, it would also look at the option of  setting up a special purpose vehicle to be jointly owned by L&T and the selected private equity fund.

In that case, L&T Infotech will not make the bid, as it has been speculated in some quarters.

L&T, which already owns 12 per cent in Satyam Computer Services, is among a number of firms – both domestic and international - that have expressed interest in the fraud-hit IT firm.

US outsourcer iGate has tied up with a private equity firm to bid for a controlling stake in New York-listed Satyam. Software services firm Tech Mahindra and diversified Spice Corporation are also in the race for Satyam Computer.