The Hindu Business Line : Satyam: New investor may get management control by weekend

NEW DELHI: The stake sale process of fraud-hit Satyam Computer has reached the final lap, with the government-appointed board all set to conduct financial bidding on Monday to select the highest bidder.

“We have entered the final stage of the bidding process, and on Monday we will conduct the financial bidding in Mumbai to find the highest bidder for 31 per cent stake in Satyam Computer,” Chairman of Satyam board Mr Kiran Karnik said.

The Satyam scrip closed at Rs 47.15 on Thursday, up 3.29 per cent. The market cap of Satyam is at Rs 3,177.36 crore.

Mr Karnik said during the bidding, board members Mr Deepak Parekh and Mr Moinak may not participate in the proceedings if the bidders happen to be those companies on which they themselves or their companies are on the board.

While Mr Parekh is on the board of Mahindra & Mahindra (parent company of Tech Mahindra, a bidder), Mr Moinak's company LIC is a major shareholder in L&T, which is a bidder in Satyam.

The Nasdaq-listed Cognizant Technology Solutions is also understood to be in the race in an “arrangement” with private equity firm Wilbur Ross.

Mr Karnik said the management change would not happen automatically on Monday, as once the highest bidder is selected, the board would recommend the successful bidder to the Company Law Board to approve the name.

Then the highest bid amount needs to be transferred to the company account before the management is handed over. - PTI

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