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Gurnani is new CEO of Mahindra Satyam

Press Trust Of India
Jun 23, 2009 at 09:36pm IST

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Mumbai: Asserting its control over Mahindra Satyam, Tech Mahindra on Tuesday appointed its executive C P Gurnani CEO of the company it acquired through open auction.

The company also appointed S Durgashankar CFO of the Mahindra Satyam whose account books were cooked by the previous management in what is now known as corporate India's one of the biggest financial scandals.

Outgoing Satyam CEO A S Murthy, who was appointed by the government board after the multi-crore rupee scam broke out in the then Satyam Computer Services, would continue to be with the company.

MERGED: Mahindra & Mahindra chief Anand Mahindra speaks during a news conference in Hyderabad.

The post of CFO in Mahindra has been lying vacant since former Satyam CFO Vadlamani Srinivas was arrested for his alleged role in the scam.

Also, Kiran Karnik would continue to be Satyam Chairman till further orders from the Company Law Board.

Tech Mahindra is also mulling over having common board for both the companies. "We are contemplating a common governance board for both the companies, which will determine the rules and seek out congruence," outgoing chief executive of Tech Mahindra Vineet Nayyar told reporters in Mumbai.

Going ahead, the Group would look at merging Tech Mahindra and Satyam, but no date has been set for the purpose."Both the companies will be merged, but no date has been set. It will happen in the foreseeable future."

When the merger takes place, there would be lots of synergy, Nayyar added.

In other top level appointments, Nayyar has been made the Executive Vice-Chairman of both the companies, while Tech Mahindra strategic initiatives head Sanjay Kalra has been promoted as the new CEO of the company.

The new Mahindra Satyam chief executive Gurnani was the head of Tech Mahindra's Global Operations, Sales and Marketing functions. Durgashankar was earlier senior vice-president (M&A) for Mahindra Group.

The new brass of Mahindra Satyam faces the challenge of cutting cost and arranging working capital for the company, said Gartner's Principal Research Analyst Diptarup Chakraborti, and added that the move is going to send strong

positive signals to markets.

Earlier in the day, Tech Mahindra said it plans to raise funds by selling 1.36 crore shares to institutional investors.

"We will use it to retire some of the debt," he said.

Tech Mahindra had acquired 31 per cent in Satyam through an open auction for over Rs 1,700 crore. It has also come up with an open offer for an additional 20 per cent.

Last Sunday, Tech Mahindra rebranded Satyam as Mahindra Satyam.

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