Class Action suit may keep Satyam suitors away: Nasscom

Here is a verbatim transcript of the exclusive interview with Som, Mittal on CNBC-TV18. Also see the accompanying video.

Q: First your own estimate of what might be the end game of Satyam and how the business might be dealt with? Are you in the camp that leans towards splitting up the businesses or finding one entity to lead it?

A: The first objective was to stabilize the company and ensure that the business continuity happens for the customers and also the employees are taken care off. I am sure the Board is looking at all the options they have. Surely there are pieces of their business that could be of interest to individual companies or let Satyam be in its own form and somebody else comes in as both an investor and somebody who can stabilise the operations. So, the jury is still out. I think it will take a little more while to decide that.

Q: Which of these two is more feasible: to try and sell Satyam to another acquirer like an L&T or an interested party as a going concern or to carve it up into smaller pieces or client accounts and try to sell it as was suggested by Phaneesh Murthy last week?

A: For the next few months, it will be important to stabilise the operation, even to identify business units, what the assets are involved with that, have a clearer understanding of what the legal implications are. We don't even know if there would be any legal implications for Satyam to sell out any part of their business. All that has to still come out, I hope that some of the findings come out quickly, but it will all depend upon the legal situation of the liabilities that come in.

For example, if the class action suits that are there in the US have any impact, then it would not make sense anybody who buys here to takeover the entire company and merge it with something. I think its still time for that to decide.

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