Satyam board split over possible buyers

The government-appointed board of Satyam Computer Services cannot reach an
agreement over who should buy the fraud-hit services exporter.

The Times of India reported that six members of Satyam’s board
objected to construction and engineering firm L&T taking the reins because
it would amount to a related-party transaction.

Over the past year, L&T has amassed a 12 per cent shareholding in Satyam.
The two companies also have a shareholder in common. L&T’s biggest
shareholder Life Insurance Corp also owns 4.3 per cent of Satyam and has a seat
on its board.

Satyam’s board, appointed in the wake of India’s biggest corporate scandal,
started work on Wednesday and is expected to name a new chief executive shortly.

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