L&T, Tech Mahindra to finalise technical & financial bids

MUMBAI: The boards of two of the potential buyers for Satyam Computer Services, L&T and Tech Mahindra, will meet on Sunday, one day before the submission of the technical and financial bids for the scam-hit firm, to give final touches to their bidding strategy.

Both L&T and Tech Mahindra will take a final decision on whether to bid or not and if so at what price on Sunday. The bidders, according to banking sources, were engaged in tense negotiations with the Satyam board over the details of the share-purchase agreement till late Saturday evening. ���The share purchase agreement is still being thrashed out,��� a banker said.

The market perception is that L&T is the front-runner. ���L&T is the front-runner although the Cognizant-Wilbur Ross combine looks to be a formidable rival. L&T was the clear favourite till Cognizant and Wilbur Ross joined hands. Tech Mahindra could also be the dark horse in the race,��� an investment banker said.

The government-appointed board of the Satyam will be happy if the winning bid is around the market price, said a person close to the board. On Friday, the Satyam stock ended 3.3% higher at Rs 47.15 on the BSE. The board and investment bankers Goldman Sachs and Avendus Advisors expect to finalise the buyer on the same day itself.

Marketmen and investment bankers expect the winning bid to be in the range of Rs 45-50. At Rs 50 the firm would cost around Rs 2,200 crore for a 31% stake through subscription of fresh shares and a 20% open offer thereafter.