Satyam board goes into huddle over bids

20 March 2009

Even as today's 5:00 pm deadline for bidders to submit detailed expressions of interest (EoIs) ended, the board of Satyam Computer Services Ltd was huddled in a meeting that may result in more clarity about the issue, as bidders have been demanding.

A Satyam spokeswoman declined to comment on the agenda of the board meeting, but analysts said the board was likely to review the details of potential buyers. It will get inputs from newly-appointed audit firms KPMG and Deloitte.

The global audit firms will be making a presentation on Satyam's revenues and other financial information based upon the investigation carried out by them over past few weeks.

Engineering major Larsen & Toubro, IT services firm Tech Mahindra, the diversified Spice Group, and US outsourcer iGate Corp have all said they have registered as potential bidders, but are awaiting details before submitting final bids.

After taking the first step by registering on the Satyam website on 12 January, the bidders were required to put in their (EoIs along with a cash proof of Rs1,500 crore by this evening. After this, when the bidders are finalised, the board may give them an insight into the financial details of the company.

The Satyam board is expected to decide before 25 March who the final bidders in contention will be. Those who proceed to the next round will be handed over confidential documents, after which they can take due diligence and put in the final bid.