Fidelity reduces stake in Satyam Computer to 6.47 pc

Foreign fund house Fidelity has offloaded 12 crore shares of the beleaguered IT firm Satyam Computer through open market transactions. In a disclosure on the National Stock Exchange, Satyam said Fidelity through its direct and indirect arms sold 12 crore shares representing 1.78 per cent stake of the company. Post sale, foreign fund Fidelity now holds 6.47 per cent stake in the company that is over 4.35 crore shares of Satyam Computer. The transaction was worth Rs 54.24 crore as calculated on the basis of Satyam's closing market price on April 6 (the date of sale). At the end of March quarter, Fidelity through its arms -- the Fidelity Diversified International Fund and the Fid Funds (Mauritius) Ltd -- held 8.71 per cent stake in the company. Yesterday, IT firm Tech Mahindra has said its Rs 1,154.66- crore open offer for an additional 20 per cent stake at Rs 58 a share in Satyam Computer would begin on June 12 and close on July 1, 2009. Tech Mahindra has proposed to the additional 20 per cent in Satyam at Rs 58 per share. Tech Mahindra is set to acquire 31 per cent stake in Satyam Computer Services at a price of Rs 58 a share. Pursuant to successful completion of the open offer, Tech Mahindra's holding in Satyam would go up to 51 per cent. Last week, Tech Mahindra had outbid others in the race to acquire a controlling stake in tainted Satyam.

Fidelity Investments to pick up 10 pc in TCIL

Fidelity Investments International today announced its decision to pick up 10 per cent stake in logistics company Transport Corporation of India (TCIL) for Rs 52 crores.

"With this, the FII's stake in the company would come close to 10 per cent of paid up equity. The development comes in the light of the company's plans to expand and consolidate its supply chain and logistics business, both nationally and globally," says a TCIL release.

TCIL will raise the money to part finance its capital expansion plans worth Rs 440 crores. The FII will pick up the stake at Rs 105.25 per share for a face value of Rs 2 each.

"Out of our total capex plan of Rs 440 crores, we would be spending Rs 340 crores over a period of three years, beginning 2007-08 for investment in warehousing, fleet upgradation and expansion, shipping and IT systems," it quoted TCIL Vice Chairman and MD D P Agarwal as saying.

TCIL has already invested Rs 100 crore in the last financial year and has plans to invest Rs 200 crores this fiscal, it added.

(Source: Economic Times)