Mumbai, April 13: Engineering major Larsen & Toubro on Monday said it
will not dilute stake in IT major Satyam, where it lost the
race to Tech Mahindra for 31 percent strategic holding, and
exuded confidence that the new owner of the Hyderabad-based
giant would add value for shareholders.
"We are not disappointed with the outcome," a top
official of the engineering giant said when asked for
comments on the company losing out to Tech Mahindra for
acquiring Satyam.
"We expect that the new owner (the successful bidder Tech
Mahindra) will increase the value of the enterprise and
consequently an increase in the value of our holdings," D
Morada, L&T general manager, said.
Asked about the 12 percent holding in Satyam, he said,
"We are not permitted to buy or sell Satyam equity for a
period of six months ... This condition applies to all
bidders."
The official said that the company would not have gone
overboard on the bidding for Satyam where Tech Mahindra
emerged successful with an offer of Rs 58 a share, saying, "We
bid what we thought was the fair value for the enterprise."
L&T, which accumulated its holding to 12 percent ahead of
race, had offered Rs 45.90 a share.
It was expected that the value of enterprise, as seen by
the bidders, would vary considerably in view of the assessment
that had to be made on the basis on incomplete information.
Bureau Report
First Published: Monday, April 13, 2009, 00:00