The Hindu : Business : Stock surges, FIFA not to review contract now

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Wednesday, Jan 28, 2009
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Stock surges, FIFA not to review contract now

Special Correspondent

The Federation is watching the situation at Satyam

HYDERABAD: The reports that L&T would increase its stake in the fraud-hit Satyam Computers boosted the share prices of the later on the Bombay and National stock exchanges on Tuesday. While the shares surged by 21.36 per cent and closed at Rs. 47.15 after an intraday high of Rs. 49.90 on the Bombay Stock Exchange, the highpoint on the NSE was Rs. 54.40.

Over 15 crore shares, little less than a fourth of the total number, were traded during the day. Plans of L&T were indeed taken cognisance of by the Government-appointed board of directors too at its meeting here.

While the company is basking in the signs of prosperity, another good news came from the Federation of International Football Associations (FIFA), which clarified that it was not in a hurry to review its contract with the crisis-ridden company.

Satyam won the contract to provide IT services for FIFA World Cups in 2010 and 2014 to be held in South Africa and Brazil, respectively. The FIFA media team clarified that the federation was observing the situation and it was too early to comment on the issue.

Satyam had already developed intranet and extranet of the tournament in line with the contract. The core IT of event management system, accommodation and hospitality management would be handled by Satyam. A Satyam spokesperson asserted: “We are confident that we can handle the task.”

The FIFA’s guarded response reinforced confidence among the associates in the company. It was supporting all-India Football Challenge to reach 3,000 colleges in ten States.

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