Capgemini says no interest in Satyam stake
(Repeats story issued late on Wednesday)
* Capgemini not interested in buying Satyam stake
(Adds details, background)
PARIS, March 11 (Reuters) - Capgemini (CAPP.PA), Europe's largest computer consultancy, has no interest in buying a stake in India's scandal-hit Satyam Computer Services (SATY.BO), a spokesman said on Wednesday.
Satyam has been struggling for survival since the company said in January it had overstated its profits for years and falsified assets in India's biggest corporate scandal. It began a bidding process on Monday to sell a majority stake in itself.
Satyam's market value has plunged to $734 million from $7 billion last May. The company's government-appointed board is keen to bring in an investor to restore confidence among its 50,000 staff and customers, who include General Electric (GE.N).
India's top engineering firm, Larsen & Toubro (LART.BO), which controls about 12 percent of Satyam, will put in an expression of interest, as will diversified Spice Group.
Analysts say buying Satyam, India's fourth-biggest software services exporter, would give access to a profitable company with a cash balance of about $1 billion, a good set of clients and a well-trained workforce.
Capgemini said last month it aimed to double its own staff in India to 40,000 by 2010 as it sees a strong increase in outsourcing this year. It has frozen hiring in parts of Europe.
IBM (IBM.N) had also been seen as a front-runner to buy Satyam but two sources familiar with the situation told Reuters this week that IBM had not flown a team to India, as had been reported, and was unlikely to be interested in bidding.
IBM declined to comment.
(Reporting by Dominique Vidalon; writing by Georgina Prodhan; editing by Elaine Hardcastle)
((georgina.prodhan@thomsonreuters.com; +4420 7542 7954; Reuters Messaging georgina.prodhan.reuters.com@reuters.net)) Keywords: SATYAM CAPGEMEINI/
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