After months of speculation and debate, the Mahindra & Mahindra Infotech arm, Tech Mahindra has won the bid for the scandal hit Satyam with its valuation of Rs. 58 per share. Tech Mahindra’s offer beat industry favorite L&T’s Rs. 49 per share and Wilbur Ross’s Rs. 20.
The current price of the shares (at the time of this blog post) wastrading at Rs. 48.85.
L&T, which was the front-runner for the Satyam acquisition said that their maximum bid for the tainted software giant would have been Rs. 55 in any event. One of the factors for the price cap was the fact that L&T had purchased additional stake at a higher price.
For the 47000 odd staffers at Satyam, not all is hunky-dory as Tech Mahindra has been subtly mentioning the ‘F’ word. Pink slips could be a possibility considering the investment made by the latter for the acquisition and no opposition is expected from the Government on this front.
Although Tech M has won the bid, they are well aware that the real battle has just begun. Right from synergising the business practices to settling the pedning lawsuits, Tech M has a long and arduous journey ahead.
Will the most talked about acquisition of the year be also the most successful one? Time will tell!