Buyout of Satyam likely to expedite the exit of BT from India's Tech Mahindra.(MERGERS AND ACQUISITIONS)(Satyam Computer Services Ltd.)(British Telecommunications PLC)(Brief article)

India Weekly Telecom Newsletter, April, 2009

The recent buyout of troubled Indian IT company Satyam by telecom solutions firm Tech Mahindra is being seen as a move which would expedite the exit of telecom giant British Telecom from the company. The Britain-based telecom operator has been pretty keen to divest its 31 percent holding in Tech Mahindra for nearly one year, but could not execute its decision, primarily because of the drastic reduction in the Indian firm's valuation amid the meltdown in the stock market.

Tech Mahindra, on the other hand, was rather skeptical of this move as over 60 percent of its revenues are accounted for by BT. But this acquisition of Satyam would give Tech Mahindra breathing space as it would reduce its revenue-reliance on the U.K.-based telecom firm.