The Hindu : Business : IT-focussed strategic partner ‘ideal’ for Satyam

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Wednesday, Mar 04, 2009
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IT-focussed strategic partner ‘ideal’ for Satyam

P. S. Suryanarayana

Murty rules out public-private partnership

SINGAPORE: Crisis-hit Satyam Computer Services, now engaged in a “stabilisation” exercise, will look for “a strategic partner” in an effort to “grow bigger.”

Indicating this, Satyam’s Chief Executive Officer A. S. Murty on Tuesday profiled the credentials required of any partner-company which might be preferred for this purpose. In an informal interaction with a select group of journalists here, he said the “process” of scouting for a strategic partner “is about to begin in the next few days.”

Satyam, now run by “the Government-administered board,” had already “decided in principle” to have a partner. As the CEO, he would like to see the partner “a company with information technology focus, a company with a long-term view , a company which will not strip and sell. We [at Satyam] have a complete set of service offerings . Whoever comes as a strategic partner, we want to preserve it and then grow bigger.”

Mr. Murty, here to reassure international customers, said a “significant part” of Satyam’s “world-class roster of clients” was retained in the face of the challenges sparked by self-confessed “fraud” in corporate governance by the former Chairman.

The Indian Government was now expected to make a formal announcement to set in motion Satyam’s “process” of scouting for a strategic partner in these circumstances.

Without wishing to be drawn into a discussion on the potential suitors, he also indicated that a model of public-private partnership or outright nationalisation was not on the cards. It was also not a prerequisite that the strategic partner be an IT company as such. He noted that big conglomerates with IT arms could also be considered.

Mr. Murty said “the basic fabric” of Satyam “remains the same” to-date, despite the crisis. The morale of the staff and associates “is extremely good,” and the company bagged $250 million worth of contracts in the last two months.

PTI reports from

New Delhi:

Bidding norms shortly

The bidding guidelines by Satyam Computer Services for inducting a strategic investor will be finalised in the next 10-15 days, Corporate affairs Minister P. C. Gupta told reporters in New Delhi.

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