Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

AT&T Sells Stake in Satyam Owner a Month After Buying

April 28 (Bloomberg) -- AT&T Inc., the biggest U.S. phone company, sold a 7 percent stake in Tech Mahindra Ltd., which controls India’s Satyam Computer Services Ltd., after exercising an option to buy 8 percent last month.

AT&T raised 6.6 billion rupees ($147 million) selling shares in Tech Mahindra for 762.4 rupees apiece, according to Bloomberg data. Citigroup Inc. advised AT&T on the stock sale.

The phone company exercised an option to acquire Tech Mahindra shares by purchasing an 8.07 percent stake in the Indian software developer. AT&T had the option to buy about 9.9 million shares before July 31 or when fees AT&T, a customer, paid to the software developer reached a certain level, according to the Pune, India-based company’s initial share sale document in 2006.

AT&T paid 8.98 billion rupees ($34.5 million) for the stake, Press Trust of India reported on March 23. The Dallas, Texas-based company purchased a total of 9.87 million shares in an “off-market transaction,” Tech Mahindra said last month, without disclosing the sale price. Mahindra BT Investment Co. owned the shares, according to the sale document.

Tech Mahindra, which is partly owned by BT Group Plc, won control of Satyam at an auction last year. A state-appointed board sold the Hyderabad-based computer-services company at the center of India’s biggest corporate fraud investigation to prevent clients and employees from defecting.

Tech Mahindra shares fell 4 percent to 772 rupees at 1:45 p.m. in Mumbai trading, while the benchmark Sensitive Index slid 1.3 percent. The stock has declined 22 percent this year.

To contact the reporter on this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.