Satyam Computer Services has started the bidding process in inviting interested investors to buy a 51% stake in the beleaguered outsourcing major.
The company’s image has been wrecked with the shocking disclosures of its former chairman, Ramalinga Raju that exposed the biggest corporate fraud on Indian soil. The company has been struggling for survival since Raju confessed in January that he has inflated assets by more than $1 billion, annihilating the stock price. The newly formed board seeks to rebuild Satyam’s image to convince its investors and clients.
The beleaguered company has said in a statement that interested bidders have been asked to place proposals. The interested bidders will also have to provide a proof of at least 15 billion rupees ($290 million) by March 20.
There are multiple players bidding for Satyam’s controlling stake. The names that have been doing the rounds are Spice group, Larsen & Toubro (L&T) and Tech Mahindra. IBM too was in the league but later understood to have come out of the competition. Oracle has also expressed interests.
An L&T spokesperson confirmed that the company is going ahead with a bid. The floor price of the auction is yet to be finalised.
Tech Mahindra is still not coming out on its bidding plans. Spice Chairman, B K Modi has already made it clear that it will only go for the bid if a majority stake is offered. The eligible bidders will go through short-listing process and will be also given access to certain business, financial and legal materials.
The company’s image has been wrecked with the shocking disclosures of its former chairman, Ramalinga Raju that exposed the biggest corporate fraud on Indian soil. The company has been struggling for survival since Raju confessed in January that he has inflated assets by more than $1 billion, annihilating the stock price. The newly formed board seeks to rebuild Satyam’s image to convince its investors and clients.
The beleaguered company has said in a statement that interested bidders have been asked to place proposals. The interested bidders will also have to provide a proof of at least 15 billion rupees ($290 million) by March 20.
There are multiple players bidding for Satyam’s controlling stake. The names that have been doing the rounds are Spice group, Larsen & Toubro (L&T) and Tech Mahindra. IBM too was in the league but later understood to have come out of the competition. Oracle has also expressed interests.
An L&T spokesperson confirmed that the company is going ahead with a bid. The floor price of the auction is yet to be finalised.
Tech Mahindra is still not coming out on its bidding plans. Spice Chairman, B K Modi has already made it clear that it will only go for the bid if a majority stake is offered. The eligible bidders will go through short-listing process and will be also given access to certain business, financial and legal materials.
Article Source:http://www.itexaminer.com/satyam-bidding-process-kicks-off.aspx
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