Satyam,TechM merger on cards

BOTH FIRMS ARE LIKELY TO HAVE COMMON GOVERNANCE BOARD TO START WITH

THE Mahindra Group, the new owner of Satyam Computer Services and the largest shareholder in Tech Mahindra, intends to merge the two companies, giving shape to its ambitions in the IT business. Satyam Computer Services, now branded as Mahindra Satyam, was ranked the country's fourthlargest IT exporter before the scam broke out and TechM is the country's sixth-largest IT exporter.
    "Yes, the two companies will merge and not only because its logical, there are a lot of synergies between us. I can't give a date on when it'll happen, but I can say it could be in the forseeable future," said Vineet Nayyar, who has been elevated to the position of executive vice-chairman of Mahindra Satyam. Both firms are likely to have a common governance board to start with and Mr Nayyar will oversee the governance and integrated functioning of the two firms.
    Even as they exist today as different entities, they will not act as two separate companies, but co-exist under the Mahindra umbrella. With most of their services being in complementary areas, the group does not expect many challenges for them to act together. TechM is focussed on offering services to the telecom industry and Mahindra Satyam has broad capabilities across a number of industries, including financial services and manufacturing. TechM is taking shareholder approval to make a QIP of 1.36 crore shares.
    Depending on the market conditions, the company will decide on the timing of the issue, Mr Nayyar said. The funds will be used to retire the debt TechM has taken to finance the Satyam acquisition. The succession issue at TechM after Mr Nayyar retires is also resolved with two of its senior-most leaders now being elevated to CEO levels.
Mynampati quits,
Panda steps in
MUMBAI: RAM Mynampati, former Satyam executive director and an interim spokesperson of the company after Ramalinga Raju's exit, is learnt to have put in his papers, reports Jessica Mehroin Irani. He has been replaced by Keshab Panda as the head of the healthcare vertical. AS Murthy, earlier Satyam's CEO, will now take over as the chief technology officer (CTO) of Mahindra Satyam, officials privy to the development said. This was first reported on ET NOW. Ram Mynampati was the interim CEO of Satyam for a brief period after Ramalinga Raju had confessed to a Rs 7,000-crore fraud spread across five years at the IT company.

(Form left) Vineet Nayyar, executive VC of TechM and Mahindra Satyam, Anand Mahindra, chairman of Mahindra group, Sanjay Kalra, CEO of TechM, and CP Gurnani, CEO of Mahindra Satyam in Mumbai on Tuesday — Nalin Solanki

SUBSCRIBE TO Free SMS Alerts on India Stock Markets
OR SEND SMS "ON WAY2TRADE  " TO 9870807070
|DisasterAwareness | Health | Insurance |  Forex| Commodities|

Earn decent money by receiving SMSes on your cell phone.  Free Signup!

Chat ways2invest wilint

Contact Me

Ways2Health Dentists Listing in the USA