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Fidelity Cuts Satyam Holding

Fidelity has cut its stake in Satyam Computer by selling some 12 crore shares

From a disclosure made by Satyam on the National Stock Exchange, it has come to the fore that foreign fund house Fidelity has sold off as many as 12 crore shares of the fraud-hit software company-Satyam Computer Services on April 6, 2009 through open market transactions.

The sell-off is believed to have been executed by various direct and indirect arms of Fidelity. Based on the closing price of the stock on that day, the transaction amount comes to Rs 54.24 crore. This constituted 1.78 per cent stake of the company.

While Fidelity held 8.71 per cent stake in the company through its arms at the end of March quarter, this transaction has brought down its stake in Satyam to 6.47 per cent. Now Fidelity holds over 4.35 crore shares of Satyam

Meanwhile, Tech Mahindra, the IT firm that had won the bid to acquire a controlling stake in Satyam announced yesterday that it would begin its open offer for an additional 20 per cent stake in the company on June 12, 2009. This open offer will be made at Rs 58 a share and will close on July 1, 2009. Tech Mahindra's holding in Satyam will go up to 51 per cent on successful completion of the open offer.