Tech Mahindra the highest bidder for India's Satyam

MUMBAI (Reuters) - India's Tech Mahindra (TEML.BO) was the highest bidder for a majority stake in fraud-hit Satyam Computer Services Ltd (SATY.BO), the Indian outsourcing company said in a statement on Monday.

Satyam SAY.N said the mid-sized IT services firm's bid of 58 rupees ($1.2) a share for a 31 percent stake was the highest among the shortlisted bidders. The offer price represents a 23 percent premium on Satyam's last close price of 47.15 rupees.

Three months ago, Satyam's founder and former chairman shocked investors by saying profits had been overstated for years, and putting in doubt the survival of the company ranked as India's fourth largest outsourcing firm.

The government quickly stepped in and sacked the board as it sought to limit damage from India's biggest corporate scandal. The new board has been looking for a buyer to help restore the confidence of its clients and staff.

(Reporting by Sumeet Chatterjee; Editing by John Mair)