Satyam pursuing sale of Sify

BANGALORE: Satyam Computer Services has said that it is still

actively looking to sell all or part of its 52.5 percent in its loss-making

Internet service provider, but did not provide further details. 

India's No.4 software services exporter last October announced plans to

divest its stake in the Nasdaq-listed Satyam Infoway as it focuses on its

software business.

It has since not announced any new developments regarding the stake sale,

which analysts expect to be a big trigger for Satyam Computer's shares. "Satyam

continues to actively pursue its objective of divesting its stake in Satyam

Infoway, in whole or in part," Chairman B. Ramalinga Raju told an analysts

conference call after the company announced results for the April-June quarter.

Satyam's shares were down 2.5 percent at 214.90 rupees in late morning trade

on Thursday after it reported a nearly 11 percent year-on-year fall in

first-quarter profit, slightly more than analysts'expectations. Satyam Infoway

said last week its April-June net loss nearly halved from a year earlier. It

posted a first-quarter net loss of $8.7 million, down from $16.2 million a year

ago, but marginally higher than $8.4 million reported in the preceding quarter.

The company, which also provides e-commerce services and operates the portal

www.sify.com, has been cutting costs and increasing prices at a time when

smaller rivals have been going under. Satyam Infoway's revenue rose 17 percent

year-on-year to $8.3 million. Last April, the company said it expects to start

generating cash by March 2003.