L&T likely to appoint Citi, Nomura as advisors

Saturday, February 28, 2009 at 3:02 am

Larsen & Toubro is believed to be close to appointing Citigroup and Nomura as its advisors for the making bid for stake acquisition in crisis-ridden Satyam Computer Services. “L&T is close to appointing Citi and Nomura as advisors on the potential Satyam deal,” a person in know of the developments said. However, L&T spokesperson was unavailable for comment.

The company, which has a 12 per cent stake in Satyam Computer, is interested in acquiring the software exporter. Meanwhile, the two investment bankers of Satyam — Goldman Sachs and Avendus — are learnt to have recommended 51 per cent stake sale to the company’s board that met on Thursday.

According to a source, the investment bankers in their presentation said it would be better to dilute 51 per cent equity, which should include 31 per cent preferential route and 20 per cent via open offer, to a strategic investor. Earlier, CLB had allowed the board to induct a strategic investor in a transparent manner. Following this, the board in its last meeting on Saturday had decided to invite bids from strategic investors to steer the company out of the financial quagmire.

(With inputs from agencies)

( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)

L&T likely to appoint Citi, Nomura as advisors

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