Tech M gets US anti-trust body's nod for Satyam offer

Mumbai-based IT firm Tech Mahindra has received approval from the US anti-trust authority to acquire the additional 20 per cent stake of Satyam Computer Services through an open offer for Rs 1,154 crore. The offer, which started on June 12, will close on July 1.

In a filing to the US Securities and Exchange Commission (SEC) and to Indian stock exchanges today, the company declared: “Our request for early termination of the applicable waiting period relating to the offer has been granted under the Hart-Scott-Rodino Anti-trust Improvements Act of 1976.”

It further stated that “...the condition to the offer with respect to anti-trust approval under the Hart-Scott-Rodino Act has been satisfied”. The approval is important for the open offer, as Satyam is listed on the New York Stock Exchange (NYSE).

The open offer has already got anti-trust approval from Germany’s competition regulator, the Federal Cartel Office, and India’s two premier bourses — the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Tech Mahindra had announced an open offer on April 22 for buying an additional 20 per cent at a price of Rs 58 a share from the shareholders of the IT firm. However, Satyam’s shares are trading at much higher than Rs 58. On Thursday, the scrip closed at Rs 79.10, 36 per cent higher than Rs 58.

The open offer was made after Tech Mahindra bought a 31 per cent stake in Satyam for Rs 1,756 crore through the issue of preferential shares after an auction process.

The company’s stock was up 3.84 per cent today at Rs 783.50 at close of trade on the BSE, while Satyam’s closing price of Rs 79.10 came after a gain of 2.2 per cent over its previous close.