Mahindra Satyam surges 8% on possible merger plan

Shares in Mahindra Satyam were up as much as 7.91 percent in opening trade after Economic Times reported on Tuesday that the company and Tech Mahindra are close to appointing merchant bankers for a merger plan, dealers said.

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The company was bought by Tech Mahindra in 2009 after it stunned investors when its former chairman Ramalinga Raju said profits had been overstated and assets falsified in a fraud, India's biggest involving a corporate, estimated to be worth more than $1.5 billion.

At 9.29 a.m shares in Mahindra Satyam were at RS 65.60 up 3.96 per ent and Tech Mahindra were at 575.25 rupees, up 0.92 percent.

Reuters