IBM eyes stake in India’s Satyam

International Business Machines, the global technology company, has held talks to acquire a stake in Satyam Computer Services, India’s fourth largest software services company.

An executive close to the Hyderabad-based IT company confirmed that discussions had been held with Ramalinga Raju, the chairman and founder, who directly or through associates controls about 14 per cent of Satyam.

IBM has been looking to expand in India, where it employs 30,000 people in research and development, sales and a call centre unit in Delhi formerly known as Daksh e-services, which it acquired for $160m in 2004.

Satyam, majority owned by foreign investors, has seen its valuation soar as more western companies outsource to India.