New York based International Business Machines Corp (IBM) is unlikely to bid for fraud-hit Satyam Computer Services Ltd, fearing the legal and financial risks involved in its buying, people familiar with the matter told the media. Sources said that, IBM's opportunity to expand in India is outweighed by the legal and financial risks related to Satyam's accounting scandal. The news came after Satyam won SEBI's approval on Friday (6th March) to sell a majority of 51% stake in itself.

 

Earlier this week, media reports said that, IBM was the "front-runner" to buy Satyam. For this the company had brought in a team of bankers and lawyers from the United States and Europe to India to assess the deal size and risks. But two sources familiar with the situation told the media that, IBM was unlikely to be interested in bidding for Satyam. However it is unclear whether IBM has hired financial advisers.

 

Buying Satyam, India's major software exporters, could help IBM expand its geographic presence. But analysts say that, the company already has a lead in India with customers including top wireless provider Bharti Airtel.