Tech Mahindra, the IT arm of auto major Mahindra and Mahindra won the bid for India's fourth largest software exporter Satyam Computer.

Satyam's new board of directors, which met here to select the highest bidder, chose Tech Mahindra following its bid of Rs.1,757 crore ($351.4 million) for 31 percent stake in the scam-tainted IT giant. "It is commendable that the government-appointed board at Satyam has been able to bring a closure to the uncertainty surrounding Satyam's future. The government has addressed the issue quickly and responsibly. Overall, it is a good thing that the issue is put behind us," said S Gopalakrishnan, CEO, Infosys Technologies.

Tech Mahindra offered Rs.58 for each Satyam share.

The board will now have to inform the Company Law Board (CLB) of its selection. The CLB will announce its approval, within a week. The new owner will take over the management only after CLB's nod.

Engineering major Larsen and Toubro (L&T) and private-equity firm WL Ross were among the other major contenders for the Hyderabad-headquartered Satyam.

L&T already holds 12.04 percent stake in Satyam.

The six-member Satyam board is headed by Kiran Karnik, former president of the National Association of Software and Services Companies (NASSCOM) that represents the software industry.

Besides Karnik, the board comprises HDFC chairman Deepak Parekh, former Securities and Exchange Board of India (SEBI) member C. Achuthan and Confederation of Indian Industry (CII) mentor Tarun Das.

Source: IANS