Indian software company Tech Mahindra Ltd. is the highest bidder for a stake in rival Satyam Computer Services Ltd., two people familiar with the development said Monday.
"They (Tech Mahindra) have emerged as the clear winner. They had bid at 58 rupees ($1.16) per share," one of them told Dow Jones Newswires. The next bidder was Larsen & Toubro Ltd. at 49.50 rupees, the person added.
According to the process laid down earlier, the bid is for a 31% stake in Satyam. This will be followed by an open offer for another 20% in the company.
At 58 rupees per share, Tech Mahindra would have to pay about 32 billion rupees to 33 billion rupees for a controlling 51% stake in Satyam, said Apurva Shah, an IT analyst with Mumbai-based brokerage Prabhudas Lilladher.
Billionaire investor Wilbur Ross had bid at 20 rupees per share, while U.S.-based Cognizant Technology Solutions Co. had withdrawn from the process, the person said.
Hyderabad-based Satyam, once India's fourth-largest software exporter by revenue, is looking for a buyer who will infuse funds and help revive the company.
The company has been in turmoil after its founder, B. Ramalinga Raju, revealed in January he overstated its profits over several years and created a fictitious cash balance of more than $1 billion.
