Satyam Sees Decision On Investor In 6 to 8 Weeks

25 February, 2009

Satyam Computer Services is likely to find a strategic investor in about two months, the outsourcing firm hit by India’s biggest corporate fraud said in a staff newsletter.

“It is likely that the answer to who is the strategic investor and further details surrounding this will emerge from a competitive, fair and transparent method in 6 to 8 weeks,” said the newsletter, which was dated Tuesday and emailed to Reuters on Wednesday.

“The intent is to progress in a swift manner, but the intricacies of diligence and the need for confidentiality with bidders will need due consideration and time,” it said.

Chairman Kiran Karnik told Reuters on Tuesday that New York-listed Satyam hoped to invite expressions of interest from potential bidders by the end of the week.

Potential suitors include Larsen & Toubro, India’s top engineering and construction firm, Hinduja Group and Spice Group.

The newsletter said Satyam’s government-appointed board, which will meet again in Hyderabad on Thursday, was exploring all options for inviting a strategic investor who had a strong reputation and financial capability.

Satyam has been struggling for survival since Jan. 7, when its founder and chairman Ramalinga Raju quit after disclosing profits had been overstated for years and assets falsified.

“The unusual situation where Satyam’s financial accounts are in question… has its complexities in arranging the induction of the new investor,” the newsletter said.

Karnik said on Tuesday the restatement of Satyam’s accounts would take time, and bidders would have to make their decisions based on information other than audited accounts of the company.

The board appointed KPMG and Deloitte in January to restate Satyam accounts.


Leave Your Comment
Govt may relax takeover rules for Satyam - reports

Govt may relax takeover rules for Satyam – reports

Reuters 9 years ago
MUMBAI (Reuters) – India’s market regulator will consider relaxing takeover rules for an open offer in Satyam Computer Services to help the fraud-scarred outsourcer attract...
Satyam: IBM Not In The Bidding; Spice Undecided

Satyam: IBM Not In The Bidding; Spice Undecided

Reuters 8 years ago
Satyam Computer Services Ltd’s search for a buyer suffered a setback on Thursday, as a source said IBM is not in the bidding, while India’s Spice Group...
SEBI To Amend Open Offer Rules As Firms Eye Satyam

SEBI To Amend Open Offer Rules As Firms Eye Satyam

Reuters 9 years ago
The Securities and Exchange Board of India will change its rules on mandatory open offers to buy shares in firms after an approach from Satyam...
No Comments

Satyam Sees Decision On Investor In 6 to 8 Weeks

Powered by WordPress.com VIP