Business Daily from THE HINDU group of publications
Thursday, Apr 02, 2009
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Business Daily from THE HINDU group of publications Thursday, Apr 02, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Info-Tech
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Mergers & Acquisitions Corporate - Corporate Governance Web Extras - Software
M. Somasekhar
Hyderabad, April 1 With due dilligence by bidders on track, the next round of submission of technical and financial bids for stake buy in Satyam Computer would begin around April second week. The next meeting of the Government-appointed six-member board is scheduled to be held on April 3 in Mumbai to take stock of the progress of the bidding process and ready for the next step. According to sources in the know of developments, the list of serious bidders for the 51 per cent stake in the IT company is down to 4-5. These include engineering major L&T, Tech Mahindra, WL Ross & Co and private equity players or global IT majors. Satyam financialsThese bidders have been given access to Satyam’s financials, cash flow situation, collections of receivable during January-March, 2009, details of fixed assets and top 100 customers at the “virtual data room”, the sources told Business Line.
The financial health of the company is reasonably good with payment of salaries to employees, bringing up-to-date payments towards provident fund (PF), tax deducted at source (TDS) and insurance both in the US and India, they claimed. The Satyam board which had, after an initial review of the financial situation sought and tied up Rs 600 crore towards working capital expenditure and salaries from IDBI and Bank of Baroda, had to only spend only Rs 300 crore so far and the rest was available when necessary, sources said. The total strength of Satyam Computer would be around 47,500, after the attrition post the revelations of the financial fraud by former chairman Mr B. Ramalinga Raju. According to the audited figures of Satyam for second quarter ended September 30, 2008, the employee strength was approximately 53,000. After the attrition during the Q3, the number came down to 51,000 which included 45,000 in Satyam alone while the balance 6,000 was in subsidiaries across the globe and contract workers etc. There has been a steady outgo of employees due to the development at the company and according to records about 3,000-3,500 have left in the last few months, sources said. Bidders given full access to liabilities, litigations of Satyam Is WL Ross in race to acquire Satyam stake? Financial bids for Satyam likely by April 9 More Stories on : Mergers & Acquisitions | Corporate Governance | Satyam Computer Services Ltd | Software
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