L&T stakes claim, says it has a plan to save Satyam

Engineering major Larsen & Toubro (L&T) continues to be interested in acquiring Satyam Computer Services. L&T’s chairman AM Naik told ET that L&T, which is one of the largest shareholders of Satyam, is not interested in being a spectator in the ongoing saga . Mr Naik also expressed his opposition to any IT company taking over the troubled Hyderabad-based company, citing conflict of interest. The company, which owns 4% in Satyam, is believed to have approached top government officials saying it has an action plan to save the software-maker . Persons familiar with the matter said Mr Naik has sought an appointment with Prime Minister Manmohan Singh to drive home the point that the engineering company is best suited to take over Satyam, provided the government took care of Satyam’s liabilities. But, with the board planning to appoint investment bankers, who will examine the option of inducting a strategic partner, it is unclear if the government will directly interfere in the process. Any potential buyer, including L&T, may have to participate in the formal process conducted by the board. When contacted Mr Naik denied that L&T has approached the government to take control of Satyam. But, he made it clear that his company doesn’t want to be a passive spectator in the Satyam saga. “I don’t want to be a mute spectator to Satyam’s value being eroded. If we can’t play an active role, we wouldn’t want to take board position,” he said. L&T is worried that Satyam’s rivals are working overtime to win over its top notch customers and clients. “Unless something is done now, it may be too late for Satyam,” he added.