IBM Joins In SATYAM bidding Race. IBM is believed to be the front-runner to acquire Satyam Computer Solutions, reported the Business Standard.
The other suitors in the race include Larsen & Toubro, which owns 12% in Satyam and BK Modi owned Spice Group. The new Satyam Board is likely to invite bids for 31% stake in the company with an assurance of 51% stake even if the bidder fails to get the additional mandatory 20% stake from open offer.
If IBM wins the race to acquire Satyam, it will become the largest IT services player in India, with a combined employee strength of over 125,000 people (more than current leader Tata Consultancy Services).

Analysts said IBM will benefit significantly by acquiring Satyam because the Hyderabad-based company has a low-cost structure that can give IBM the leverage to compete with Indian IT service providers.

“Larger companies have better merger and acquisition (M&A) experience, strong client relationships, and a very strong understanding of the IT business,” said Sudin Apte, senior analyst, Forrester. reported the Business Standard. IBM leads race for Satyam buy