Decision on Mahindra Satyam, Tech Mahindra merger after Nov

Mahindra Satyam on Wednesday said the decision to merge the company with Tech Mahindra is likely to be taken after November 15.

Saying that the merger remains high on the management's priorities, Mahindra Satyam chairman Vineet Nayyar said the process of merger of the two companies can only start once Mahindra Satyam accounts are up to date.

After a gap of nearly two years, Mahindra Satyam announced its finanicials for FY09 and FY10 on Wednesday.

"On April 13, Anand (Mahindra) and I clearly stated our intention to merge the two companies. However, before we can start the process, the company (Mahindra Satyam) has to be current in terms of its accounts," Nayyar told reporters here.

The company is expected to declare its Q1 and Q2 numbers for the ongoing financial year by November 15.

"Thereafter, we will commence the procedure," he added.

Without disclosing any time frame for the possible merger, Nayyar said: "Normally the process takes about nine months to a year. How much time we take, I can't say but that (merger) is our objective."

Tech Mahindra acquired Satyam Computer Services in April last year and later renamed the company Mahindra Satyam.

According to Nayyar, Mahindra Satyam would approach the high courts of Andhra Pradesh and Maharastra in due course, to seek approval for the proposed merger.

"Procedure involves essentially approaching the High Courts of Andhra Pradesh and Maharashtra (in due course). Thereafter, we will go to the accountants for determining the fair value of the two companies and the swap ratios," Nayyar said.

These swap ratios will then go to the annual general meetings of the two companies and after their approval, the merger will be completed, he added.

Mahindra Satyam reported a consolidated loss of Rs 124.60 crore for the year ended March 2010.

In January 2009, erstwhile Satyam Computer's founder and then chairman B Ramalinga Raju admitted to fudging account books to the tune of thousands of crores of rupees.