Satyam gets 'adequate bid response'

Mar 14, 2009
Kiran Karnik (2ndL), newly appointed chairman of Satyam Computers, walks out after a board meeting in Mumbai in February 2009. The board of swindled Indian outsourcing giant Satyam said it has received an "adequate response" to its invitation for bids, as a newspaper said Saturday that IBM had joined the race.

The board of swindled Indian outsourcing giant Satyam said it has received an "adequate response" to its invitation for bids, as a newspaper said Saturday that IBM had joined the race.

The said almost 130 companies had expressed interest in buying , including multinationals IBM, and buyout specialist KKR.

A Satyam spokeswoman declined to confirm the reports.

A statement on Satyam's website said: "The process of registration of bidders... has received adequate response from Indian and international bidders, including private equity firms."

Four companies have publicly said they are interested in taking a 51 percent stake in Satyam, which is at the heart of India's biggest corporate deception.

They are Indian engineering giant Larsen & Toubro, which already has a 12 percent stake in Satyam; the Spice Group conglomerate, which has telecommunications interests; Tech Mahindra, an arm of the diversified Mahindra Group; and Nasdaq-listed iGATE, a technology company.

Software exporter Satyam has been struggling to stay in business since founder B. Ramalinga Raju made the stunning admission in January that he had falsified the balance sheet to the tune of one billion dollars and fudged profits.

The registration of interest is only the first stage of the sale -- prospective bidders must submit a "detailed expression of interest" and show they have at least 15 billion rupees (290 million dollars) by next Friday.

Analysts expect only a few serious bidders to emerge.

IBM, KKR and Fidelity could not be reached for comment. IBM has said it does not comment on market speculation.

The confession by Raju, now in jail, has wiped around 1.7 billion dollars off the market value of Satyam's shares and the board is anxious to restore market and client confidence in the company.

(c) 2009 AFP

Explore further: Weibo IPO below expectations, raises $285.6 mn

add to favorites email to friend print save as pdf

Related Stories

Recommended for you

Weibo IPO below expectations, raises $285.6 mn

8 hours ago

Sina Weibo sold fewer shares than expected in its US IPO which was priced below expectations ahead of a Thursday listing that takes place after tech selloffs on Wall Street.

'Chief Yahoo' David Filo returns to board

9 hours ago

Yahoo announced the nomination of three new board members, including company co-founder David Filo, who earned the nickname and formal job title of "Chief Yahoo."

Fired Yahoo exec gets $58M for 15 months of work

9 hours ago

Yahoo's recently fired chief operating officer, Henrique de Castro, left the Internet company with a severance package of $58 million even though he lasted just 15 months on the job.

IBM posts lower 1Q earnings amid hardware slump (Update)

19 hours ago

IBM's first-quarter earnings fell and revenue came in below Wall Street's expectations amid an ongoing decline in its hardware business, one that was exacerbated by weaker demand in China and emerging markets.

User comments : 0

More news stories

Tailored approach key to cookstove uptake

Worldwide, programs aiming to give safe, efficient cooking stoves to people in developing countries haven't had complete success—and local research has looked into why.

A sharp eye on Southern binary stars

Unlike our sun, with its retinue of orbiting planets, many stars in the sky orbit around a second star. These binary stars, with orbital periods ranging from days to centuries, have long been the primary ...