The new board of fraud hit Satyam Computer Services has appointed Goldman Sachs and Avendus as investment bankers to the IT firm to explore various strategic options. The board has also appointed Boston Consulting Group as management advisors to the board itself and Satyam’s management. The three member BCG team will towards reviving Satyam.
The board has also said that selling Satyam in parts, as mentioned in many reports, is not an option right now. BCG will also not be charging any fees for its services.
The options being explored by the investment bankers are identifying strategic investors, obtaining expressions of interest and ensuring a fair and transparent approach.
“The board has recieved several proposals from corporate entities and select private equity firms,” said TN Manoharan, who chaired the board meeting, in a BSE filing. The key highlights of the Satyam’s board communique to BSE are as follows:
-Selling Satyam in parts not an option now
– To take measures to invite open bids
– Adequate number of bidding interests have been evinced
– Propose Management structure and a plan of action this week
– 3 member BCG team to work on reviving Satyam
– Reaffirms that january 2009 salary will be paid
– Satyam, now a government administered company
Also, the Board clarified that L&T increasing the stake in Satyam may not be construed as a support from the government nominated Board.
Separately, Pricewaterhouse, the audit firm for Satyam has suspended S Gopalakrishnan & S Talluri as Partners.