Satyam

  • Tech Mahindra won the auction for a controlling stake in Satyam Computer Services, the disgraced Indian outsourcing group. Tech Mahindra, which is partly owned by British telecommunications group BT, will pay $353m for a 31 per cent state in Satyam, which is still reeling from an accounting scandal that has made its former chairman the target of criminal investigations.
  • Seagate scrapped its dividend payments and raised $430m in a secured bond issue as it tried to weather the steep downturn in the diskdrive business. The latest evidence of collapsing profit margins wiped nearly 5 per cent off its share price, even as the company gained market share.

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  • Indian police filed formal charges against former Satyam chairman B. Ramalinga Raju, two of his brothers, two Price Waterhouse auditors and four others, in a widening of the probe into the outsourcing giant’s alleged fraud. Meanwhile, four parties emerged as serious bidders for what’s left of Satyam, set to be auctioned off on Monday.
  • The Australian government is set to invest $31bn in the construction of a national broadband network. The eight-year project is expected to create 37,000 jobs, and will amount to the nation’s largest-ever infrastructure project.

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  • A judge approved Yahoo‘s plan to change a controversial severance plan that would have added to the cost any acquirer would face to buy the company. Yahoo’s shares rose 4 per cent, making it one of the few companies to gain on the day – though Microsoft CEO Steve Ballmer has said that he would not consider a full takeover.
  • Apple‘s shares took a hit after a JP Morgan analyst warned that wilting consumer demand was starting to eat deeper into second quarter sales. Among other things, JP Morgan lopped 11 per cent off its forecast for iPhone shipments and 8 per cent off its Mac shipment forecast.

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