Finally,Tech Mahindra is declared highest bidder for Satyam. We can assume Satyam is now in safer hands.
Today i.e. Monday, 13th April 2009 will at least be remembered by thousands of employees of Satyam, Tech Mahindra.
Investors considered this deal a win-win and is the reason stocks of these companies rose on this day of importance.
Mahindra offered Rs 58 a share for a 31 per cent stake in Satyam Computer Services by beating other strong rivals such as Larsen & Toubro who offered Rs 47 a share. L&T already has 12% stake in that company.
Tech Mahindra will also make an open offer for another 20 percent stake in Satyam and thus will evolve as majority stake holder in Satyam.
Sources say that L&T is unlikely to exit during the open offer.
It’s believed that there will be no mass lay-offs after the take over. Having said that, gradual lay offs cannot be ruled out.
Un-allocated employees (employees on bench) should be prepared for any unfavorable decisions. It’s believed that 100 senior key employees cannot be removed by the new employer.
Now the question on whether Tech Mahindra still values the offers made to freshers by Satyam remains unclear. It’s believed that an email communication was sent to all 6000 freshers who had got offer letters from Satyam earlier asking them to explore alternate opportunities. Clearly, 6000 is sizeable number and L&T may not consider absorbing all the freshers in these recessionary times.
With this deal, Tech Mahindra clearly emerges as one of the Top 5 IT companies of India.
This takeover by Tech Mahindra would immensely help Satyam regain shareholder’s value and would obviously benefit Satyam’s employees and customers.
Let us all hope this transaction be a successful one.