US suits may cost Satyam up to $840 mn: Spice's Modi

NEW DELHI: BK Modi���s Spice Group has estimated that the liabilities from the dozen-odd class-action lawsuits against Satyam in the US could range between $440-840 million, which could discourage aggressive bidding for the company, by lowering valuation. Spice, one of the early birds to have evinced interest in the scam-hit IT company, said this estimate has been given by its legal advisors.

���We have received a report from our legal advisors Gibson , Dunn & Crutcher LLP and they said the liabilities could range between $440-840 million . We have to factor this in,��� Modi said. Spice Group plans to file expression of interest (EOI) for Satyam on March 12, the last day stipulated for registration for bidding.



A series of class action lawsuits ��� on behalf of thousands of investors in the American Depository Shares (ADS) of Satyam ��� have been filed for violation of US securities laws after Satyam���s disgraced founder B Ramalinga Raju confessed to having cooked up the company���s financials for many years.