BS Reporter / Mumbai April 03, 2009, 19:37 IST
Deepak ParekhAn announcement regarding the stake sale of tainted IT firm Satyam Computer Services will be made tomorrow, according to board member Deepak Parekh. “Some news with regard to the stake sale of Satyam will be announced tomorrow,” Parekh told reporters here.
Meanwhile Kiran Karnik, chairman of the government-appointed board, said: “The due diligence process is still not over. We are sticking to our earlier time schedule for the stake sale.”
The Satyam board today met informally in Mumbai to take stock of the ongoing process and access the technical competence of suitors for the scandal-hit IT firm. The meeting was also attended by investment bankers Avendus and Goldman Sachs as well as the bidders.
Officials from Larsen & Toubro and Tech Mahindra met the board members. Some of the people spotted at the meeting today were Vineet Nayyar, vice chairman, MD and CEO, and C P Gurnani, president (international operations), Tech Mahindra. L&T Chief Financial Officer Y M Deosthalee was also present along with some company officials.
Last evening, the Satyam board had clarified in a press statement that they have made a few changes in the bidding process more transparent. The highest bidder, according to new norms, will be declared winner provided the second highest bid is not within the 10 per cent range. If the second highest bidder is within the 10 per cent range, then the board will call for an open auction.
The board is understood to have shortlisted around eight bidders. These include the $7 billion engineering behemoth L&T, IT major IBM, and Tech Mahindra. The BK Modi-promoted Spice Group withdrew from the bidding process, citing lack of transparency. The US-based private equity firm, W L Ross & Co, is learnt to have completed the due diligence on assets and liabilities of Satyam.
The shortlisted bidders will be asked to submit the financial bids next week for acquisition of 31 per cent stake in Satyam. The winning bidder will have to make an open offer to shareholders to buy an additional 20 per cent stake. The board had earlier indicated that it was hopeful of finalising a buyer by April 30.
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