The largest engineering company of country, Larsen & Toubro (L&T) bought 7.56 per cent more stake in beleaguered Satyam Computer Services and increased its stake to 12 per cent on Friday. It bought 1.18 crore shares at a price of Rs 35.07 per share through open market.

The step has been taken to reduce average cost of acquiring Satyam shares and strengthen its case for acquisition before the Satyam board. It should be recalled that many companies are in race to acquire fraud hit Satyam Computer after the disclosure of largest ever corporate fraud committed by its tainted chief Ramalinga Raju and other executives.

L&T spokesperson said, "By acquiring 12%, L&T is now the largest single shareholder in Satyam and are therefore entitled to a board seat."

The company is looking for appropriate time to seek representation in Satyam board as it emerged as largest shareholder in the software firm.

Government has appointed six directors in Satyam's Board by sacking all members of its old board and announced to appoint four new directors to restore the image of company. Four positions of directors are still unoccupied and Larsen & Toubro can claim these vacant slots in days to come.

L&T chairman, AM Naik earlier expressed his desire to buy Satyam. The company is successfully running software business through its subsidiary L&T Infotech. A market analyst said, "This is perhaps the last opportunity for Mr Naik... to prove his mettle in the IT industry."