February 20, 2009 / 4:52 AM / 11 years ago

L&T says studying Satyam decision

MUMBAI (Reuters) - Larsen & Toubro, the largest shareholder in Satyam Computer Services, said it will review a decision to allow the fraud-hit outsourcer to increase shares on issue and sell a stake before making its next move.

An employee (2nd R) and security guards walk near the main entrance of the Satyam Computer Services head office in Hyderabad in this January 12, 2009 file photo. REUTERS/Krishnendu Halder

“We are studying details of the Company Law Board order. Only after studying the details, we will take a decision,” Chairman A. M. Naik told reporters on Friday.

L&T, India’s leading engineering and construction firm, has a 12 percent stake in Satyam.

On Thursday, Satyam won approval to bring on board a strategic investor with the financial and management clout needed to ensure its survival, and to make a preferential share issue.

The Company Law Board said Satyam could raise its authorised shares on issue to 1.4 billion from 800 million, and a board member said criteria for a stake sale could be finalised next week.

Satyam has been struggling for survival since Jan. 7, when founder and chairman Ramalinga Raju quit and said profits had been overstated for years and assets falsified.

(For full coverage on Satyam click here)

For Quotes and Interactive Charts of Satyam Computer Services click here

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