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Mahindra Satyam, Tech Mahindra to merge this year

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CIOL Bureau
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BANGALORE, INDIA: Last year, Mahindra Satyam Chairman Vineet Nayyar said that his company would be merged with parent firm Tech Mahindra in 2012.

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It seems the time has come. As per media reports, Nayyar reiterated his statement at the World Economic Forum meeting in Davos. Hinting at retaining the name Mahindra, he said, “Mahindra is more important to us than Satyam."

Also read: Satyam merger in 2012: Nayyar

In May last year, he had said that merger could be delayed as it is a legal process which has to go to two high courts.

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Tech Mahindra had acquired Satyam Computer Services Limited in April 2009, a few months after Satyam was rattled by India's biggest corporate fraud. Satyam was subsequently re-named Mahindra Satyam.

The company has already paid $10 million to settle the US Securities and Exchange Commission's suit over the fraud. It paid $125 million to settle class action suits and another $70 million to settle the case.

In January, 2009, erstwhile Satyam Computer’s founder and then Chairman Mr B Ramalinga Raju admitted to fudging account books to the tune of thousands of crores of rupees.

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