Satyam Computer Services Ltd. won approval from The Securities and Exchange Board of India to sell a 51% stake in the company.

Much maligned in recent months after the Hyderabad-based software-services provider revealed it had defrauded investors and clients, the Business Standard reported yesterday that IBM Corp. may be the front-runner to acquire the company, citing, sources close to the situation.

As a result of the announcement, Bloomberg reports today that Satyam's shares rose 20%, valuing the company at 28.4 billion rupees ($550 million).

IBM has begun talks to buy Satyam, and brought in a team of lawyers and investment bankers to assess the deal, according to the Business Standard report.

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