The engneering and construction firm Larsen & Toubro Ltd is looking to expand its software unit by trebling its stake in fraud-hit Satyam Computer Services Ltd, Larsen Chairman A.M. Naik said on Tuesday. Larsen had raised its holding in Satyam on Friday to 12 percent from 4 percent.
While L&T paid Rs 460 crore for the initial four per cent buy, the second round to treble its stake was far less expensive at Rs 176 crore. All in all, the company has doled out close to Rs 640 crore for 12 per cent in Satyam.
"Overall, we are only trying to improve our situation," Naik told an analysts in a conference call that was aired on television channel CNBC-TV18.
"If nothing else, to really make L&T Infotech bigger by our stake in Satyam," Naik said.
Satyam gives L&T access to infrastructure, clients and a huge base of 40,000 employees, and would strengthen the position of its technology arm, L&T Infotech.