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Tech Mahindra, Satyam merger in 2 yrs

Indian outsourcer Tech Mahindra and its unit Mahindra Satyam  could be merged within two years, the Economic Times reported on Thursday, citing the vice-chairman of the two firms.

“I would say between 12 and 14 months. We should go in for it, if other things remain equal,” the newspaper quoted Vineet Nayyar as saying to a question on how quickly the two firms were likely to be merged.

Nayyar had told a new conference on Tuesday to announce executive appointments at Mahindra Satyam he expected the two firms to be merged in the foreseeable future as it was logical and had synergies.

Tech Mahindra, which is 31 percent owned by BT Group won an auction in April for a controlling stake in fraud-tainted Satyam Computer Services, now rebranded as Mahindra Satyam.

Satyam, once India's fourth-largest outsourcer, was plunged into crisis after its founder quit as chairman in January revealing profits had been falsified for years and $1 billion in cash and bank deposits did not exist.

Source: Reuters

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