Mumbai, Jan. 9: Engineering and construction firm Larsen & Toubro (L&T) has suffered a loss of around Rs 340 crore or 85 per cent of its portfolio investment in Satyam Computer.

However, this massive mark-to-market loss has not fazed L&T who intends to hold on to its investment till the tide turns for Satyam. It could even consider a strategic alliance with the troubled company.

“What is the point of trying to cash out 15 per cent of our investment? The idea is to support the revival of the company, boost the morale of employees and increase the acceptance of clients. Let’s not forget that half a million shareholders will lose money and the need of the hour is to act in a responsible manner to comfort shareholders during this crisis,” L&T chairman A.M. Naik told The Telegraph.

L&T has a 4 per cent stake in Satyam which it acquired for an average price of around Rs 150 per share.

The engineering company has a strategic interest in Satyam, especially since it has a presence in the IT sector through Larsen & Toubro Infotech. The recent turn of events at Satyam has not changed its view if the software major survives these turbulent times.

“We bought our first 2 per cent as we were keen to strike an alliance but now that the company is under a cloud, the situation is a bit different,” said Naik.

“We hope that the company will not close. Let us support Satyam in making a comeback. If it does survive, the share price will go up, these mark-to-market losses will be irrelevant and the reason that we had bought into the company in the first place will still make sense,” he said.

L&T’s share price fell 7.2 per cent on the Bombay Stock Exchange today. The Satyam stock fell 40 per cent.

Several large global brokerages have suspended coverage of Satyam because of lack of reliable financial and business information about the company.

Credit Suisse, which is one of these brokerages, has said that the key issue is whether the company had no cash to begin with or whether the cash was misappropriated later.