Two Satyam Disputes 'Settled Amicably'

Indian IT outsourcing giant Satyam has reached agreement over two of its three acquisition-related disputes, reports indicate.

The group's troubles surfaced over a year ago when Chairman Ramalinga Raju admitted falsifying company results to the tune of 70bn rupees ($1bn) in an effort to forestall a takeover.

Three companies served legal notices seeking termination of asset purchases or requiring guarantees on payments due under their buyout agreements. Of these, US-based Bridge Strategy Group and Ghent, Belgium-based supply chain solutions firm S&V Management Consultants now say they have come to terms.

Doubt remains, however, about the group's relations with and purchase of the market research and customer analytics business unit of construction giant Caterpillar, acquired by Satyam for $60 million in April 2008. Last June, it was revealed that the two firms were engaged in a legal dispute regarding non-payment - just $20m of the agreed $60m is said to have been paid to date. The companies 'began negotiating to amicably resolve the outstanding issues' three months earlier, the statement said, and settlement negotiations were then 'at an advanced stage'. However Jim Dugan, Chief Corporate Spokesperson for Caterpillar, still says the acquisition 'is an ongoing legal issue', adding 'our policy does not allow us to discuss the same.'

At the time of the acquisition announcement, Satyam said it would launch a business unit to provide research and analytics services globally to Caterpillar and other companies, and would 'establish itself at the forefront of the substantial KPO market' worldwide, with innovation centers in India, Europe, North America, Latin America and Asia Pacific.

Web sites: www.satyam.com and www.cat.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.