State Farm Insurance terminates Satyam contract



U.S.-based insurer State Farm Insurance Co has terminated its contract with fraud-hit Satyam Computer Services Ltd (SATY.BO), a spokeswoman for the Indian outsourcer said on Monday.

Confirming a report in the Mint newspaper, she said Satyam would issue a statement later on Monday.

Satyam, India’s No. 4 software services exporter, has been battling for survival since Ramalinga Raju resigned as chairman earlier this month, revealing profits had been falsified for years and that $1 billion of cash on the books did not exist.

On Saturday, a government-appointed six-member board said it was looking for a new chief executive and chief financial officer for the company.

Source: Reuters