Is IBM interested in Satyam?

World’s giant IT organization IBM is understood to be the front-runner to acquire Satyam Computer Solutions, a company it named as one of its main competitors in a filing to the New York Stock Exchange.

The IT giant, said sources close to the developments, has begun discussions with Satyam's government-nominated board and expressed its desire to acquire a majority stake in the company. A team of investment bankers and lawyers from the US and Europe has been brought in to assess the size of the deal and the risks associated with it. The company is also understood to have conducted an initial due diligence on some of Satyam's major customers.

A week ago, Minister of Corporate Affairs P C Gupta said the open bids would not be restricted to Indian players. IBM was named one of the hostile bidders for Satyam by promoter Ramalinga Raju at the company's December 16 board meeting. Other prominent players in the race are Larsen & Toubro, which owns 12 per cent in Satyam, and the B K Modi- owned Spice group.

If IBM wins the race to acquire Satyam, it will become the largest IT services player in India, with combined employee strength of over 125,000 people.