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L&T Unit In Talks To Buy Patni Stake-Report

By Reuters

  • 05 Nov 2009

The outsourcing unit of engineering and construction firm Larsen & Toubro is in advanced talks to acquire a majority stake in software firm Patni Computer Systems, the Financial Express reported on Thursday.

"L&T Infotech has been in talks with Patni for sometime now. We have already completed due diligence," the newspaper quoted a L&T source as saying.

The paper said the three Patni brothers -- Narendra Kumar, Gajendra Kumar and Ashok Kumar -- holding a combined stake of 48.3 percent in the company, had finally decided to sell.

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Earlier talks to sell the stake in 2007 fell through as one of the brothers was not willing to sell.

A spokesman for Larsen declined comment.

"This is a rumour and we do not comment on speculation," Patni's chief financial officer, Surjeet Singh, said in a statement to Reuters.

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Earlier this year Larsen failed in its attempt to acquire fraud-hit Satyam Computer, losing to Tech Mahindra who renamed it Mahindra Satyam.

VCCircle Adds: Private equity firm General Atlantic, which owns an 18% stake in Patni, has also put its stake for sale. It owns around 18% stake, for which it paid $100 million 2002.

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