Satyam, TechM merger likely next year

HYDERBAD, INDIA: Mahindra Satyam's merger with parent firm Tech Mahindra may take place in April-May next year, its chairman Vineet Nayyar said Monday.

However, this may be delayed as it is a legal process which has to go to two high courts, he hinted.

"We are at this point of time in dialogue with Securities Exchange Commission of United States as to what areas we have some problems and what areas we don't. We hope this issue will be settled by October, after which we will trigger the merger," Nayyar told reporters here.

He pointed out that the two companies have declared clearly their intention to merge.

TechM acquired Satyam Computers in April 2009

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

Asked when Mahindra Satyam would re-list on New York Stock Exchange, company's CEO C.P. Gurnani said it was in negotiations with Securities and Exchange Commission of the US.

"New York Stock Exchange does not have a problem. SEC has a problem on certain US GAAP principles. The problem is the US itself is going to change its accounting principle to IFRS (International Financial Reporting Standards)," Gurnani later told IANS.

Mahindra Satyam internal audit head Sunil Sangar was non-committal when asked whether the re-listing would happen during this fiscal.

He said a decision in this regard would be taken after it "closes earlier chapter". He was referring to the issues that cropped up from the accounting fraud of Satyam Computer's former chairman B. Ramalinga Raju.

Mahindra Satyam had to delist its American Depository Receipts (ADRs) from the New York Stock Exchange last year after it failed to file restated accounts as required by the US markets regulator.