Mahindra Satyam merger with Tech Mahindra likely next year
May 23rd, 2011 - 6:42 pm ICT by IANS
Hyderabad, May 23 (IANS) Mahindra Satyam’s merger with parent firm Tech Mahindra may take place in April-May next year, its chairman Vineet Nayyar said Monday.
However, this may be delayed as it is a legal process which has to go to two high courts, he hinted.
“We are at this point of time in dialogue with Securities Exchange Commission of United States as to what areas we have some problems and what areas we don’t. We hope this issue will be settled by October, after which we will trigger the merger,” Nayyar told reporters here.
He pointed out that the two companies have declared clearly their intention to merge.
Tech Mahindra acquired Satyam Computer Services in April 2009, a few months after Satyam was rattled by India’s biggest corporate fraud. Satyam was subsequently re-named Mahindra Satyam.
Asked when Mahindra Satyam would re-list on New York Stock Exchange, company’s CEO C.P. Gurnani said it was in negotiations with Securities and Exchange Commission of the US.
“New York Stock Exchange does not have a problem. SEC has a problem on certain US GAAP principles. The problem is the US itself is going to change its accounting principle to IFRS (International Financial Reporting Standards),” Gurnani later told IANS.
Mahindra Satyam internal audit head Sunil Sangar was non-committal when asked whether the re-listing would happen during this fiscal.
He said a decision in this regard would be taken after it “closes earlier chapter”. He was referring to the issues that cropped up from the accounting fraud of Satyam Computer’s former chairman B. Ramalinga Raju.
Mahindra Satyam had to delist its American Depository Receipts (ADRs) from the New York Stock Exchange last year after it failed to file restated accounts as required by the US markets regulator.
Indo-Asian News Service
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- Mahindra Satyam posts flat Q1, Q2 revenues (Lead) - Nov 16, 2010
- Mahindra Satyam posts flat revenues in first two quarters - Nov 15, 2010
- Mahindra Satyam's merger with Tech Mahindra next year - Nov 10, 2011
- Mahindra Satyam, Tech Mahindra merger likely in 8-9 months - Apr 24, 2012
- Mahindra Satyam-Tech Mahindra merger put on hold - Feb 14, 2011
- Mahindra Satyam ADRs start trading over-the-counter - Oct 14, 2010
- Tech Mahindra-Satyam to merge in November - Sep 29, 2010
- $10m US settlement in firm's interest, says Mahindra Satyam - Apr 06, 2011
- Mahindra Satyam, Tech Mahindra Ltd merge - Mar 21, 2012
- Stage set for Mahindra Satyam's merger - Mar 20, 2012
- Mahindra Satyam reports loss due to lawsuit settlements (Lead) - May 23, 2011
- Mahindra Satyam posts 3 percent revenue growth in Q3 - Feb 14, 2011
- Mahindra Satyam to exit American Depository Share programme - Aug 10, 2011
- Two-fold jump in Mahindra Satyam's net profit - Aug 10, 2011
- Tech Mahindra, Mahindra Satyam to merge (Lead) - Mar 21, 2012
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