The week kicked off with a landmark deal as the scam tainted Satyam got a new lease of life. More than three months after the accounting scam first came to light, Tech Mahindra won the bid for Satyam at Rs58 a share, beating L&T, Spice Group and Wilbur Ross. The Company Law Board has approved the takeover, which has propelled Tech Mahindra into the number four position in the Indian IT sector. Tech Mahindra, which is 31% owned by Britain’s BT Group, will pay $351 million for a 31% preferential allotment of new shares in Satyam and will make an open offer for a further 20% at a cost of up to $225 million.
Moving on to politics, the first phase of the voting for the general election on Thursday was marked by Naxal violence across three states. 17 people were killed in Bihar, Jharkhand, Chhattisgarh and Orissa. Polling booths and vehicles carrying elections officials were captured and torched in various districts across Chhattisgarh. The BJP lashed out at the government saying enough security was not provided, but the Congress was defensive.
The overall voter turn out was on average 60%. The Naxal affected states did modestly well, with more than 50% polling. The highest turnout was in Lakshwadeep, while UP and Bihar, the states that together hold 120 seats in the Lok Sabha, performed relatively poorly with UP at 48-50% and Bihar, the lowest at 46%.
In a reprieve for Varun Gandhi, the Supreme Court ordered his release on parole for two weeks on condition that he would give a fresh undertaking that he would not make any more hate speeches. The Congress interpreted this as a admission of his guilt.
And the vicious verbal duel between the Congress and the BJP continued through the week.
Time for some speed news now:
1) Reading into signs that the global economic slowdown is fading, investor
confidences pushes the Sensex across the 11,000 mark. Sensex ends the week
2) Despite an upward pressure on food items and fuels, inflation rose 0.18% during the week ended 4 April, below the previous week’s annual
rise of 0.26%.
3) The rupee remains flat and ends the week at 49.71 vs the the dollar.