India's Satyam Computer Services on Friday said third quarter revenues increased 33% year-over-year and denied a report that it's the subject of acquisition talks by IBM.

For the period ending December 31st, Satyam said sales grew to $375.6 million, while net income reached $71.1 million. Satyam's net income for the third quarter of 2005 was $93 million, but that figure included a one-time gain from Satyam's sale of its interest in Indian Web portal Sify, Ltd. Satyam, based in Hyderabad, said it added 2,746 employees during the quarter.

Satyam also said Friday that it is not entertaining any takeover offers. "We firmly believe that enhancement in shareholder value is best when we continue to pursue the already successful global delivery model we specialize in. Satyam, therefore, shall not indulge in any such pursuits of being acquired," said Satyam founder and chairman B. Ramalinga Raju, in a statement.

The Financial Times of London recently reported that IBM held talks with Satyam about a possible takeover or investment. IBM has been ramping up its presence in India in recent quarters in an effort to fend off competition from low-cost offshore service providers. In 2004, the global computing giant acquired Daksh eServices, a provider of business process outsourcing services based in Delhi.