The ongoing trial of the multi-thousand crore accounting fraud of erstwhile Satyam Computer Services has forced its new management Mahindra Satyam to put on hold its plans for merger with Tech Mahindra.
Mahindra Satyam chief executive officer (CEO) CP Gurnani told the media conference here that the merger process could not be initiated without the approval of the investigating agencies, including the Central Bureau of Investigation and the Securities and Exchange Board of India.
"For a company with a history like this, you need to get tacit approval or at least symbolic go-ahead from some of the agencies currently investigating the case before any merger process can be initiated," he said, adding that the investigating agencies had put the company's plans on hold.
In November when the company released the results of the first two quarters, Gurnani said the company had started the consultation process for a merger with parent Tech Mahindra, a unit of utility vehicles maker Mahindra & Mahindra (M& M), and expected the process to take a year.
On Monday, Mahindra Satyam released the results for the third quarter of the current financial year. It reported a more than two-fold jump in the consolidated net profit for the quarter ended December 31, 2010, to Rs 58.9 crore.
The company had reported a consolidated net profit of Rs 23.3 crore for the July-September quarter of 2010. Revenue for the third quarter grew marginally to Rs 1,279.3 crore from Rs 1,242 crore in Q2, FY2010- 11, Mahindra Satyam said in a filing to the Bombay Stock Exchange.
Courtesy: Mail Today
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