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L&T increases stake in Satyam from 4% to 12%

This article was posted on Jan 23, 2009 and is filed under Press Releases

Larsen & Toubro has increased its stake in Satyam Computer Services from 4% to 12%. Bulk of the buying was done by the infrastructure giant on Friday. The Satyam stock witnessed huge volumes during the day. The company has not yet commented on the move.

As per records on the NSE website, L&T bought 3.9 crore Satyam shares at Rs 34.52 per share. Sources said L&T increased the stake to protect the company’s interest in Satyam.

Earlier, L&T had picked up a 3.95% stake in Satyam, when the IT company was already facing rough weathers for its move to acquire Maytas Infra and Maytas Properties. The full-blown Rs 7,000-crore corporate scandal, however, had not broken then.

Soon after former Satyam chairman B Ramalinga Raju confessed his guilt in a shocking letter, AM Naik, CMD of L&T, went on record to say the company wouldn’t sell any of Satyam’s share but also had no intention to buy any further sake.

YM Deosthalee, L&T’s CFO, had echoed a similar sentiment after the scam broke out. He had said: “After this recent development, we won’t pick up anymore stake and we will see how the developments takes place going forward and then take a decision. The key thing is, if there is a possibility I am sure the board is going to work on that to salvage this company… we will take a decision and we will decide what to do hereafter once the picture becomes very clear.”

However, when news of L&T picking up stake in Satyam broke last time, the market reacted negatively and L&T stock was hammered down heavily. It remains to be seen how the market will react this time around when it opens on Tuesday.

source : moneycontrol

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