No interest in Satyam stake, says Capgemini

No interest in Satyam stake, says Capgemini
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First Published: Thu, Mar 12 2009. 09 39 AM IST
Updated: Thu, Mar 12 2009. 09 39 AM IST
Paris: Capgemini, Europe’s largest computer consultancy, has no interest in buying a stake in scandal-hit Satyam Computer Services, a spokesman said on Wednesday.
Satyam has been struggling for survival since the company said in January it had overstated its profits for years and falsified assets in India’s biggest corporate scandal. It began a bidding process on Monday to sell a majority stake in itself.
Satyam’s market value has plunged to $734 million from $7 billion last May. The company’s government-appointed board is keen to bring in an investor to restore confidence among its 50,000 staff and customers, who include General Electric.
India’s top engineering firm, Larsen & Toubro, which controls about 12% of Satyam, will put in an expression of interest, as will diversified Spice Group.
Analysts say buying Satyam, India’s fourth-biggest software services exporter, would give access to a profitable company with a cash balance of about $1 billion, a good set of clients and a well-trained workforce.
Capgemini said last month it aimed to double its own staff in India to 40,000 by 2010 as it sees a strong increase in outsourcing this year. It has frozen hiring in parts of Europe.
IBM had also been seen as a front-runner to buy Satyam but two sources familiar with the situation told Reuters this week that IBM had not flown a team to India, as had been reported, and was unlikely to be interested in bidding.
IBM declined to comment.
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First Published: Thu, Mar 12 2009. 09 39 AM IST
More Topics: Satyam | Capgemini | Bidding | Larsen and Toubro | IBM |