Satyam board to meet in Hyderabad tomorrow to discuss bidding

MUMBAI: The Satyam board is expected to meet in Hyderabad on Friday to evaluate the bidders for acquiring up to 51 per cent stake in the crisis-ridden IT company.

The Government-appointed company board has received several bids for stake acquisition including ones from engineering major Larsen & Toubro, Spice Group, Hinduja Group and i-Gate.

"We will be meeting in Hyderabad tomorrow," Satyam's Chairman and former Nasscom chief Kiran Karnik told PTI here without elaborating any further.

The winning bidder can acquire up to 31 per cent stake in the company. Upon successful completion of the process, the partner can purchase additional 20 per cent through an open offer.

L&T, which is believed to be the front-runner for acquiring majority stake in the scam-tainted Satyam, has at present 12.04 per cent holding in the company.

Market regulator Securities and Exchange Board of India had recently amended the take-over rules for companies having Government-appointed boards, facilitating Satyam's stake sale.

The Hyderabad-based IT major plunged into crisis in January following the confession of its founder-Chairman B Ramalinga Raju that he cooked the company's balance-sheet for several years.

The new board, consisting of a panel of experts like HDFC Chairman Deepak Parekh and former Sebi member C Achuthan, had invited proposals from interested parties last week.

Interested parties can submit EoIs, along with the proof of Rs 1,500-crore fund -- a condition laid down by the board -- by March 20.

Once the board receives bids, the process to select the strategic partner would not take more than three-four weeks, a highly placed source in Satyam said.