Mumbai: Larsen & Toubro, the largest shareholder in Satyam Computer Services, said it will review a decision to allow the fraud-hit outsourcer to increase shares on issue and sell a stake before making its next move.
“We are studying details of the Company Law Board order. Only after studying the details, we will take a decision,” chairman AM Naik told reporters on Friday.
L&T, India’s leading engineering and construction firm, has a 12% stake in Satyam.
On Thursday, Satyam won approval to bring on board a strategic investor with the financial and management clout needed to ensure its survival, and to make a preferential share issue.
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The Company Law Board said Satyam could raise its authorized shares on issue to 1.4 billion from 800 million, and a board member said criteria for a stake sale could be finalised next week.
Satyam has been struggling for survival since 7 January, when founder and chairman Ramalinga Raju quit and said profits had been overstated for years and assets falsified.