It’s very good news for Mahindra Satyam. The stock, which closed at Rs 103 on Wednesday, up 1%, has gained almost 12% in a week. Analysts say that the settlement for $70 million will eliminate the uncertainty surrounding its liabilities. Also it will save it from disgrace & might get be able to retain the client.
Upaid had filed the lawsuit in a Texas court seeking damages exceeding $1 billion, alleging forgery of documents necessary for transfer of proper title to its under an assignment agreement entered into in 1998.
Mahindra Satyam has agreed to pay $70 million to UK-based mobile payment services firm Upaid in an out-of-court settlement, ending uncertainty over one of its long-drawn legal liabilities.
In return, Upaid will drop all charges against Mahindra Satyam and also provide a royalty-free license on its patents on a worldwide and perpetual basis. The amount is a tenth of what Upaid was seeking in damages from the erstwhile Satyam.
In return, Upaid will drop all charges against Mahindra Satyam and also provide a royalty-free license on its patents on a worldwide and perpetual basis. The amount is a tenth of what Upaid was seeking in damages from the erstwhile Satyam.
BUY Mahindra Satyam with the target of Rs.150 in near term.
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