I noticed a few headlines about BT considering selling its 30.9% stake in Tech Mahindra.
Tech Mahindra is part of the Mahindra Tech group, which is the company that rescued Satyam, now Mahindra Satyam, after the billion dollar fraud committed by its chairman. They are both part of the Mahindra Tech group and were expected to merge when Mahindra Satyam announces its next results, which are expected to see it return to growth.
I met Mahindra Satyam’s European boss, Vikram Nair, last week and he was really positive about the company going forward following almost breaking even after a £1.2bn loss the previous year as a result of the fraud.
The reason I think there might be an impact on Mahindra Satyam is because Nair said there were plans for the telecoms strength of Tech Mahindra to be combined with the software expertise if Mahindra Satyam. A true global ICT player he said, with a good story in cloud computing.
But if BT wants to sell its stake does this mean the substantial business it does with Tech Mahindra will end? It relies on BT for a lot of its business.