IBM, Accenture Possible Satyam Suitors As Board Errupts

Shares of Satyam (SAY), the Indian outsourcing firm that has been rocked by scandal after a botched acquisition and reports that it was banned from business with The World Bank, are jumping this morning amid speculation of a management shaekup. Indian daily paper The Economic Times this morning reports that “a clutch of global IT services firms” are potential bidders to acquire Satyam, citing unnamed analysts. The article notes that “chances of a strategic takeover have brightened after the company announced the possible dilution of stake by founder and promoter B Ramalinga Raju on Saturday.” The story lists IBM (IBM), Accenture (ACN), and France’s Cap Gemini (CAP) among the possible suiters, and mentions U.S. private equity firm General Atlantic Partners and U.S. outsourcing firm Cognizant Technology Solutions (CTSH). In a separate story, the Economic Times notes that four independent directors on the company’s board have resigned, as of this afternoon, and that the board pushed out a meeting that was to take place this weekend until January 10 as it mulls measures to restore investor confidence. The Economic Times says it’s likely chairman Raju will be dismissed. Satyam shares rose 55 cents, or 7%, to $8.47.

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