Hundreds of Satyam staff 'set to join Bank of America'

2 April 2009

Up to 300 employees of Satyam Computer Services - the IT outsourcing firm at the center of India's biggest corporate scandal - are set to join Bank of America, it has been reported.

The Business Standard said the staff had been working on a project for Merrill Lynch, which was taken over by BoA when the brokerage was bought by the bank to prevent its collapse late last year, Reuters states.

Merrill Lynch decided not to continue with the initiative - which involves the management of its database and infrastructure support - after it emerged that Satyam's chairman, B Ramalinga Raju, had engaged in a £1 billion ($1.4 billion) accounting fraud to wildly inflate the company's profitability.

Instead, the newspaper said, the work would be moved in-house and as a result, between 250 and 300 Satyam employees will transfer across to BoA starting from April 2nd.

BoA and Merrill Lynch declined to comment on the story, while a spokesman for Satyam told Reuters it was a "speculative" report.
Satyam is currently in the process of finding a new buyer.

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