Tech Mahindra extends merger with Satyam, both stocks down

Shares of Tech Mahindra and Mahindra Satyam were trading lower since early trade on Tuesday after the Tech Mahindra extended the proposed merger of Mahindra Satyam with itself for six months.

The company in a release sent to exchanges said that its board of directors extended the validity of the (amalgamation) scheme by a further period of six months i.e. up to September 30, 2013.

"The board has extended "scheme of amalgamation and arrangement of Venturbay Consultants Pvt Ltd and Satyam Computer Services Ltd and C&S Systems Technologies Pvt Ltd and Mahindra Logisoft Business Solutions Ltd and CanvasM Technologies Ltd with Tech Mahindra and their respective shareholders and creditors," the company said.

Tech Mahindra bought the scam-tainted Satyam Computer in April 2009 and rebranded it as Mahindra Satyam.

In February 2013, Tech Mahindra had expressed the hope that the proposed merger of Mahindra Satyam with itself will be completed shortly.

At 12:45 hours IST, the stock of Tech Mahindra fell 1.28 percent to Rs 1,032.45 while Mahindra Satyam declined 0.5 percent to Rs 121.90 on Bombay Stock Exchange.