IBM on Shortlist as Bidder for India's Satyam

IBM(IBM Quote) is one of eight parties that have qualified as potential suitors for India's Satyam Computer Services(SAY Quote), a report says.

Others making the shortlist for a 51% stake in Satyam include private equity firm Apax Partners, Indian engineering firm Larsen & Toubro, Tech Mahindra and Spice Group , the Economic Times reports.

The next stage of bidding involves putting a price tag on Satyam, These firms will do their due diligence over the next two days, said a person familiar with the development, the Economic Times reports.

Satyam has been struggling for survival since Jan. 7, when its founder and former chairman, B. Ramalinga Raju, confessed to filling the company's balance sheets with $1 billion in "fictitious" assets and "nonexistent" cash.

The entry of IBM, if confirmed, could give serious competition to Larsen & Toubro, which so far is perceived as the strongest and most serious contender, the Economic Times reports. IBM registered its interest through a law firm.

India's Spice Group on Wednesday said it was looking at pulling out of the race because of stringent terms and conditions. U.S.-based iGate(IGTE Quote) said Friday that it has withdrawn from bidding on Satyam.