Tech Mahindra Ltd, the technology arm of India's Mahindra Group, placed a successful bid for controlling equity in fraud-hit Satyam Computer Services

Tech Mahindra Ltd, the technology arm of India's Mahindra Group, placed a successful bid for controlling equity in fraud-hit information technology firm Satyam Computer Services Ltd on Monday, news reports said. Tech Mahindra outbid Larsen and Toubro Ltd, which already owns 12 per cent equity in Satyam, and Nasdaq-listed technology company Cognizant, which was backed by US-based private equity investor Wilbur Ross, NDTV Profit television channel reported quoting company sources. Satyam's new board of directors, appointed by the government after the company's owner Ramalinga Raju admitted to fraud to the tune of 1 billion dollars in January, met in Mumbai to select the highest bidder who also has the capability to run the IT major. Satyam's board was expected to make a formal announcement later Monday. Shares of Tech Mahindra rose by over 40 per cent as news of the successful bid filtered in. The total valuation of 51 per cent controlling equity in Satyam at the rate of 60 rupees per share works out to 29.88 billion rupees (599 million dollars). Satyam Computer is India's fourth-largest information technology services firm and operates in 66 countries. It has 53,000 employees and counts 185 Fortune 500 companies as its customers.