Kiran Karnik named Satyam chairman

A potential bidder for Satyam Computer Services backed away from a deal on Friday, as one of the members of the new board was appointed as the chairman of the outsourcing company.

The Indian government said Kiran Karnik, a former technology lobby group head, would assume the role of Satyam chairman, a day after the outsourcing firm named a new chief executive and secured funding to help retain clients and employees.

Karnik is one of the six-man Satyam board, constituted by the government in the wake of the massive accounting fraud at the company.

Separately, US-based iGate Corp said it now has no interest in buying Satyam due to lack of clarity on liabilities of the company -- snared in India's biggest corporate scandal -- Chief Executive Phaneesh Murthy said on Friday.

"I have very little interest or no interest left in this company right now," said Murthy, who was previously the global sales chief at rival Infosys Technologies and spearheaded strong sales growth in the key US market.