Satyam board may devise auction process

Saturday, February 21, 2009 at 5:02 am

Distressed IT firm Satyam’s board is likely to discuss ways of taking forward the process of conducting a public auction, for inducting one or more strategic investors, in its meeting on February 21.

The Company Law Board allowed the IT firm on February 20, to conduct a public auction for inducting one or more strategicinvestors and to raise its equity base. The government-appointed board of Satyam, is likely to discuss the ways for taking forward the process of auction.

In its order, CLB Chairman S Balasubramanian stated that, it was necessary for Satyam to bring in long-term funds by inducting a strategic investor. Accordingly, its board can pass a resolution to enhance the company’s authorised equity capital to Rs 280 crore, comprising 140 crore shares of Rs two each from Rs 160 crore currently.

Ahead of the meeting of Satyam’s directors, one of the suitors, B K Modi-led Spice group is holding a board meeting (on February 21) to decide on its bid for the IT company. Modi had earlier suggested an e-auction for the sale of stake in Satyam, where it is seeking preferential allotment of shares amounting to a controlling stake.

(Agencies)

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Satyam board may devise auction process

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