India's Tech Mahindra Ltd. won the bid to acquire a controlling stake in the beleaguered software giant Satyam Computer Services Ltd. (SAY) on Monday for over $500 million.

Tech Mahindra offered a bid of 58 Indian rupees per share for a 31% stake in Satyam, beating two other rivals: engineering major Larsen & Toubro Ltd and private equity firm WL Ross & Co.

Tech Mahindra, in which Britain's BT Group (BT) has 31% stake, will make a public offer to acquire an additional 20% in Satyam at the same price.

Last January, software giant Satyam shocked investors by revealing that its assets were overstated by more than $1 billion. Although founder B. Ramalinga Raju, co-founder B. Rama Raju, CFO Srinivas Vadlamani and three other employees have been arrested for cheating and forgery, investor confidence on Satyam has dwindled.

The acquisition is expected to restore confidence in India's

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Rocked by scandal, Satyam Computer Services Ltd. (ADR: SAY) is embarking on a massive corporate restructuring, but with India’s reputation as an investment destination and world leader in information technology at stake, time is of the essence and the government could be forced to step in with a financial bailout.

“We are considering all options and will soon announce definite steps to help the company overcome the current crisis as it is the question of saving jobs and an international brand,” Commerce and Industry Minister Kamal Nath said Monday. “The Prime Minister is closely monitoring the developments on Satyam.”

Indian authorities last Friday detained former Satyam Chairman B. Ramalinga Raju on charges of forgery, breach of trust and criminal conspiracy after the founder of India’s fourth-largest software exporter confessed to falsifying about $1 billion in cash on Satyam’s books and exaggerating

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