Engineering and construction major Larsen &Toubro (L&T) is not happy with Mahindra Satyam (erstwhile Satyam Computer Services) for keeping its investors in the dark over details of its performance. Pune-based Tech Mahindra, the information technology arm of the Mahindra & Mahindra group, owns 42.67 per cent in the company.
“As investors, we have no idea how the company has fared in the last 10-11 months. Financials is one aspect but we need to know what is happening in terms of business, employees, etc. We have communicated our dissatisfaction to the management,” said a company spokesperson.
Mahindra Satyam’s spokesperson was not available for comments.
L&T also said that having a stake in Mahindra Satyam is no more strategic to it and, hence, selling the stake is an eventuality. The exit would depend on the market condition. L&T owns 4.58 per cent in the company.
Mahindra Satyam was to give its financial details in December 2009, but had then said this would be postponed to March 2010. In March, it got the Company Law Board (CLB) approval to give this in June.
L&T was a bidder for Satyam after the latter’s founder-head, Ramalinga Raju, confessed to a massive accounting fraud on January 7, 2009. It had acquired close to 12 per cent stake in the company through the open market and was subject to a six-month lock-in on the stake after the company was sold to Tech Mahindra on April 13, 2009.