Satyam climbs 6% as Sebi amends takeover norms

16 Feb 2009, ET Bureau

MUMBAI: Shares of the fraud-hit Satyam Computer Services were in the limelight on Monday after the market regulator SEBI eased takeover norms for
companies whose board has been superseded by the government, under which suitors such as those for Satyam Computer need not make an open offer.

The amended rules also disallows open offers from rival bidders if an acquirer has already made an open offer. The regulator said the amendment to the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, provides for "relaxation from the strict compliance of provisions of Chapter-III in certain cases."

Chapter-III deals with mandatory open offer if an entity acquires 15 per cent stake in a company, as also for acquisition or change of control of the company, among others.

At 3 pm, shares of Satyam Computer climbed 5.83 per cent to Rs 49 on the BSE.