L&T firms up as Satyam bidder, to increase stake

New Delhi: Larsen and Tubro is firming up as a bidder for Satyam and is expected to make an open offer if SEBI relaxes pricing norms.

Sources tell Network-18 that L&T is expected to increase its stake in Satyam from the current 12 per cent to 15 per cent so that it can make an open offer for an additional 20 per cent as per SEBI acquisition norms.

Sources also say L&T is likely to counter-bid if other parties put up a formal bid for Satyam. But L&T is waiting for SEBI to come out with a formal announcement on the pricing norms.

L&T Infotech's revenues are expected to touch $500 million (Rs 25 billion) this fiscal.

Satyam faces liabilities in the form of US class action lawsuits after former chairman B Ramalinga Raju admitted to inflating earnings for "several years".