Tech Mahindra falls; merger with Satyam delayed
Shares in Tech Mahindra Ltd fall 1.9 percent, while Satyam Computer Services Ltd drops 1.6 percent, a day after the companies said a long-planned merger between the two had been delayed by an additional six months up to September 30.
The companies did not give a reason for the delay in their exchange filing.
Brokerage Sharekhan says in an email to clients that the delay is "sentimentally negative" for the stocks, attributing the reason to opposition to the merger from the Andhra Pradesh High Court.
"While business has been as usual for both the entities and Tech Mahindra has already started seeing a lot of synergistic benefits from Satyam, the Street has been pricing in the merger," says Sharekhan