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from India: A billion aspirations:
Dark horse Tech Mahindra wins race to acquire Satyam
Tech Mahindra, part of Indian business group Mahindra & Mahindra, won the race to acquire Satyam Computer Services on Monday, in a deal that'll help the mid-sized outsourcer gain in size and also lift clarity on Satyam's fate.
In a race that saw only a handful of bidders, Tech Mahindra beat rivals such as engineering conglomerate Larsen & Toubro and U.S.-listed Cognizant Technologies. Tech Mahindra agreed to buy a 31 percent stake in Satyam at 58 rupees, a 23 percent premium to Satyam’s last closing price.
(Click here to watch a Reuters Insight video)
Tech Mahindra, established more than 20 years ago as a joint venture between Mahindra & Mahindra and British Telecom, faces the daunting task of reshaping Satyam, a company at the heart of India's biggest corporate scandal.
Another deal in healthcare: what’s the magic pill?
As dealmakers everywhere struggle to get deals done, the healthcare industry seals yet another one.
Express Scripts has agreed to buy health insurer WellPoint’s prescription business for $4.68 billion in a significant expansion for the U.S. pharmacy beenfit manager. The deal will be a concoction of cash and up to $1.4 billion in common stock, and will generate more than $1 billion of incremental EBITDA.
This comes on the heels of Pfizer’s $68 billion acquisition of Wyeth, Merck’s $41.1 billion takeover of Schering Plough and Roche Holding’s $46.8 billion buyout of Genentech. Granted, this isn’t a pharma deal, but it still falls under the umbrella of the healthcare sector.
And in a market where deals aren’t getting done — mainly due to tight credit conditions and partly due to value gaps between buyers and sellers (due to the huge declines in stocks late last year) — you’ve gotta ask: what’s the magic pill?
from India: A billion aspirations:
Fraud-hit Satyam pins hopes on shaky white knights
Three months after its founder Ramalinga Raju shocked markets by disclosing India’s biggest corporate scandal, Satyam Computer Services is desperately pinning its survival hopes on its auction set for April 13.
But only a handful of bidders are in the race due to lack of clarity over Satyam’s accounts and potential legal liabilities from U.S. lawsuits. Even if the company manages to find a buyer for a 51 percent stake, it’ll take a long time to instill confidence among employees already jumping shipand nervous clients.
What about the role of the government, whose appointed-board is due to choose the buyer the same week the country heads for national elections? Will the government remove its handpicked board or continue to keep a watchful eye on any new strategy chalked out by the new buyer?
Some finance industry players point out the similarity between Satyam’s deal and the deal for top Chinese electronics retailer GOME. The Chinese company is in talks with potential investors, while its founder and ex-chairman is under potential police investigation. There is a lot of uncertainty about both deals and government support, temporary or long-term, is key to shoring up both high-profile firms.
Hanmi
Agree with you, YSRajasekhar Reddys congress and before that TDP have allowed Raju brothers to doctor books and to venture into real estate business by flouting the law and in the bargain collected multiple crores for themselves.
If congress is oozing crores of rupees today and ready to spend the illegal money for election victory then the very democratic credentials of the country should be questioned. Last week, Rajasekhar reddys son in law, brother anil, was arrested for using andhra churches for election propaganda and also for distributing money in churches. Where is the sanity whats judiciary doing, is the law enforcement sleeping or is it in denial.
As for satyam,it will limp back to life and takes sometime to bounce back to previous glory. Cutting costs is of paramount immediate strategy.
Outsourcing bailout funds
Unsurprisingly, scandal-slammed Indian outsourcing firm Satyam says it may need some liquidity support to stay alive. Satyam founder and chairman Ramalinga Raju said he inflated his company’s reported cash and bank balances by more than 50 billion rupees ($1 billion). He seems to have taken to the Hyderabad hills — the company says it has no idea where he is. In a state known for its separatist tendencies, he may well stay disappeared for some time.
The interim CEO and company officers say they are committed to picking up the pieces. But this little “liquidity support” bombshell could prove to be a tricky one if it is directed at the biggest bail-out office currently handing out cash: the U.S. Treasury. Not being a U.S. company, Satyam probably doesn’t have the chutzpah to seek TARP funds directly. The company’s primary function as an outsourcing center would make the use of U.S. bailout funds politically repugnant to U.S. officials.
But the idea of foreign companies applying for U.S. taxpayer support is not a new one. Financial institutions the world over, saddled with dud U.S. mortgage-backed debt, have grumbled that they should get the same consideration as U.S. investors.
Having invested a lot of time and energy firing Americans and outsourcing their work to companies like Satyam, U.S. companies would face some risk from a meltdown in the outsourcing business. Might it even cloud their chances for recovery, or – gulp – force them to reverse the outsourcing trend and start hiring at home again? Sounds like a recipe for economic recovery.
Having invested a lot of time and energy firing Americans and outsourcing their work to companies like Satyam, U.S. companies would face some risk from a meltdown in the outsourcing business. Might it even cloud their chances for recovery, or – gulp – force them to reverse the outsourcing trend and start hiring at home again? Sounds like a recipe for economic recovery.
Damn right, I am sick of seeing my friends get fired only to be replaced by guys who aren’t citizens of this country, don’t own homes, don’t have a mortgage, don’t have a car payment, stuff 5 guys in a 2 bedroom shoebox, and could care less because when they go home, it’s to ANOTHER COUNTRY!
Outsourcing Bailout Funds
Unsurprisingly, scandal-slammed Indian outsourcing firm Satyam says it may need some liquidity support to stay alive. Satyam founder and chairman Ramalinga Raju said he inflated his company’s reported cash and bank balances by more than 50 billion rupees ($1 billion). He seems to have taken to the Hyderabad hills — the company says it has no idea where he is. In a state known for its separatist tendencies, he may well stay disappeared for some time.
The interim CEO and company officers say they are committed to picking up the pieces. But this little “liquidity support” bombshell could prove to be a tricky one if it is directed at the biggest bail-out office currently handing out cash: the U.S. Treasury. Not being a U.S. company, Satyam probably doesn’t have the chutzpah to seek TARP funds directly. The company’s primary function as an outsourcing center would make the use of U.S. bailout funds politically repugnant to U.S. officials.
But the idea of foreign companies applying for U.S. taxpayer support is not a new one. Financial institutions the world over, saddled with dud U.S. mortgage-backed debt, have grumbled that they should get the same consideration as U.S. investors.
Having invested a lot of time and energy firing Americans and outsourcing their work to companies like Satyam, U.S. companies would face some risk from a meltdown in the outsourcing business. Might it even cloud their chances for recovery, or – gulp – force them to reverse the outsourcing trend and start hiring at home again? Sounds like a recipe for economic recovery.
from India: A billion aspirations:
It’s “all in the family” for Indian tech firm
Hold on to cash and don't jump in to help family-owned firms.
Satyam Computer Services got this stern message this week when it was forced to dump a plan to spend $1.6 billion to buy two builders, part-owned by Satyam's chairman and other insiders.
Ramalinga Raju, chairman, Satyam Computer Services is seen in his office in Hyderabad in this undated handout photograph. REUTERS/Handout
The move sent shockwaves across a country known for its trailblazing software industry, and triggered a cloud over corporate governance in India.
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There is one Proverb in English – ” Ends Well All Well”. Might be it fit for Satyam but is it really done cause of Govt efforts i defer from this view. Well In fact Govt is some how support Mr. Raju and others to do such things which leads to a debacle, So finally who get the credit for this of course its IT industry and corporate who act with will to safeguard the interest of SATYAM IT industries and Indian corporate image. Its his will power that company not sold to L&T just on basis of merit of share holding but on merit of true vision and ability to handle the business. In true sense again our corporate prove that with true determination even corruptest system can be clean and make it on track to work.
And the most admirable point which mention in one newspaper that still SATYAM web page gives you a company picture not like Lehman or Enron where u find only buried souls finding their way to salvation.