US firm iGate pulls out of Satyam bidding process

US firm iGate pulls out of Satyam bidding process
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First Published: Fri, Mar 20 2009. 07 49 PM IST
Updated: Fri, Mar 20 2009. 07 49 PM IST
Hyderabad: The US based information technology firm iGate Corp, announced on Friday, that “based on further analysis” the company has decided not to go ahead the bidding process for acquiring 51% stake in India’s scam tainted Satyam Computer Services Ltd.
Friday was the deadline, set by the Satyam’s government appointed board, for the bidders to respond to the request for proposals the IT firm had sent out on 13 March.
iGate had earlier formally registered its interest in bidding for Satyam, which has been in the middle of an accounting scandal since 7 January, when its founder B Ramalinga Raju revealed that he cooked company’s account books to the tune of Rs7,136 crore.
Meanwhile, Tech Mahindra, another firm that was in the race, confirmed that it has submitted the detailed expression of interest to acquire the controlling stake in Satyam.
The Hinduja Group, which was also interested in Satyam had pulled out of the race last Friday itself.
Potential bidders are concerned about the lack of clarity about the financial status of Satyam, as well as the implications of the class action suits and other legal troubles that the company is facing.
The company’s board, which met on Friday in Hyderabad, will continue its meeting on Saturday in Mumbai, according to a Satyam spokesperson.
Satyam did not disclose any information on how many responses it has received to its Request for Proposal, which it had sent to those firms which had registered interest in participating in the competitive bidding process.
Meanwhile, a Hyderabad court has extended the judicial remand by 14 days of Satyam founder B Ramalinga Raju, his brother and former managing director of firm B Rama Raju, former chief financial officer Srinivas Vadlamani, besides the two sacked auditors of Price Waterhouse (PW) S Gopalakrishna and Taluri Srinivas who signed off on Satyam’s account books.
The court also asked the Central Bureau of Investigation, or CBI, to come out with a time line for the investigation.
The court was hearing the investigating agency’s plea for extended custody of the Raju brothers, Vadlamani and PW’s sacked auditors.
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First Published: Fri, Mar 20 2009. 07 49 PM IST