AT&T Inc, the biggest US phone company, sold a 7% stake in Tech Mahindra Ltd, which controls India\'s Satyam Computer Services, after exercising an option to buy 8% last month.
AT&T raised Rs 660 crore ($147 million) selling shares in Tech Mahindra for Rs 762.4 apiece. 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% 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 Rs 898 crore ($34.5 million) for the stake. 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 won control of Satyam at an auction last year. A state-appointed board sold the Hyderabad-based computer-services company at the centre of India\'s biggest corporate fraud investigation to prevent clients and employees from defecting. Tech Mahindra shares fell 4% to Rs 772 in Mumbai trading, while the benchmark Sensitive Index slid 1.3%. The stock has declined 22% this year.
Tech Mahindra, which employs 30,000 people, is a leading provider of solutions and services to the telecommunications industry. As on December 31, 2009, Mahindra and Mahindra, the utility vehicle and tractor maker, has 44% stake in Tech Mahindra, while UK\'s telecommunications company BT has 38% stake.
News From: http://www.7StarNews.com
Wednesday, April 28, 2010
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