Page last updated at 09:38 GMT, Friday, 6 March 2009

Satyam approved to sell 51% stake

Satyam's office in Bangalore
Satyam is struggling as clients cancel contracts

Fraud-hit IT firm Satyam has been given the go-ahead to sell most of itself.

Indian financial authorities approved plans for the company to sell a 51% stake as it seeks to win back clients and restore customer confidence.

Reports suggest computing giant IBM and Indian engineering firm Larsen & Toubro are frontrunners for the stake.

Satyam has struggled since former boss Ramalinga Raju admitting inflating their assets by more than $1bn.

Shares in Satyam jumped 18% after the company's state-appointed board got approval to sell the majority holding.

Satyam lost more than 80% of its market value following Mr Raju's confession in January.

The auction for the stake will be global and potential buyers would need to have assets of at least $150m.

The buyer then would not be able to sell its stake for at least three years, Satyam said in a statement.

Satyam had been one the biggest players in the booming Indian IT software market, supplying back-office services to firms from around the world.

Print Sponsor

India's lessons from Satyam
26 Jan 09 |  South Asia
Satyam 'padded employee numbers'
22 Jan 09 |  Business
Satyam chief's custody extended
16 Jan 09 |  South Asia
Satyam board looks to raise cash
14 Jan 09 |  Business
India appoints new Satyam bosses
12 Jan 09 |  Business
Indian IT scandal boss in custody
10 Jan 09 |  Business
India IT boss quits over scandal
07 Jan 09 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2018 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific