Satyam to soon initiate process for controlling stake sale

NEW DELHI: Satyam Computer said on Friday that it would soon invite bids from suitors across the world for selling controlling stake in the once iconic IT company, with the capital market regulator allowing it to do so.

"The bidding process will begin shortly," Satyam's government-appointed director Deepak Parekh told reporters after meeting Corporate Affairs Minister P C Gupta in the national capital.

The company has already secured waiver of certain takeover regulations from regulator Sebi that gives any potential suitor flexibility in open offer pricing.

The selected investor will have to acquire the stake by purchasing 31 per cent equity via a preferential sale of new shares and subsequently make an open offer for a minimum 20 per cent, Satyam said today.

Gupta said a retired Supreme Court judge would be overseeing the whole process, which would ensure that it is done in a transparent manner.

Parekh, along with Satyam Chairman Kiran Karnik and board member Tarun Das, had called on Gupta.

Government had superseded the board of Satyam after its founder Ramalinga Raju disclosed a Rs 7,800 crore accounting fraud in the company. Raju and others are in jail awaiting trial.