Anand Mahindra said, there was talk of merger a year before the Satyam scam came to light.
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Mahindra said this in 2009 at the launch of a book written by Raju about the 100-day journey amid the sensational letter. He said, I knew him. I approached Tech M about a year ago about a possible merger.
A year before the Satyam scam came to light, the Mahindra group was in talks for a merger with the Hyderabad-based IT company. Anand Mahindra made this disclosure on Friday. Mahindra said an offer was made to Satyam chairman Ramalinga Raju, but he never responded to the offer. Mahindra said this in 2009 at the launch of a book written by Raju about the 100-day journey amid the sensational letter. He said, I knew him. I approached Tech M about a year ago about a possible merger.
In April 2009, a government-appointed board selected Mahindra to take over Satyam. The Satyam scam was of around Rs 5,000 crore. Mahindra said he knew Raju because of his involvement in setting up the Indian School of Business in Hyderabad and said the offer was clearly something that existed between Tech M and Satyam and complemented each other. Mahindra said Tech Am had $1 billion in revenue at the time and the company was eager to become a huge conglomerate.
For this, mergers and acquisitions were also being considered. He said his company was focused on European customers, while Satyam’s focus was on the US market. In the end, the Mahindra Group was successful in acquiring Satyam by quoting Rs 58 per share against L&T’s bid of Rs 45.90 per share. Mahindra said Raju never responded to his offer because if the talks progressed, he would have been forced to show fake account books and the scam would have been exposed.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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