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IBM could buy Satyam

IBM is the leading contender for the acquisition of troubled Indian IT supplier Satyam.

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IBM is the leading contender for the acquisition of troubled Indian IT supplier Satyam, according to reports.

The global IT giant could help stabilise Satyam, which was rocked by an internal fraud earlier this year.

Satyam said it was too early to comment on speculation surrounding specific bidders but said there were several. There will be an announcement in the next couple of weeks concerning a takeover, said Satyam.

Phil Morris, European managing director at sourcing consultancy Equaterra, said it requires a big company to re-establish Satyam after the $1bn accounting fraud scandal that hit it in January.

Former CEO B Ramalinga Raju resigned and confessed to inflating the company's financial figures.

There have been reports of Satyam staff looking for new jobs and customers have been terminating their contracts with the supplier since the news of the fraud broke.

Morris said the employees and customers of Satyam will be valuable acquisitions for IBM.

"Satyam has a lot of good skilled people and a wealth client relationships that need a stable organisation to steady the ship," added Morris.

IBM already has the biggest Indian presence of any IT supplier.

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