Satyam investors reject Tech Mahindra open offer

MUMBAI, INDIA: The open offer made by Tech Mahindra to the shareholders of Satyam have made a very cold response and it could get only 4,20,915 (including 268,656 shares underlying ADSs).

This represents less than 0.1 per cent of the outstanding shares of common stock, Tech Mahindra said in a regulatory filing with the Bombay Stock Exchange.

"A total of 420,915 shares of Satyam common stock (including 268,656 shares underlying ADSs) were validly tendered and not withdrawn, representing less than 0.1 per cent of the outstanding shares of common stock," it said.

The IT firm, which controls Satyam, now named Mahindra Satyam, had proposed to acquire 198,658,498 shares representing 20 per cent stake in the company through the open offer.

While the open offer for Satyam share was for Rs 58 per share, the share value of the beleaguered IT made a surprise jump following the revelation that it had made profit in the October-December quarter, and it presently hovers around Rs 75, over 29 per cent higher than open offer price.

The offer had closed on July 1.