Satyam gets over 100 applications

Hyderabad March 13
The Satyam Computer Services’ call for registrations for the bidding process has received an overwhelming response, with over 100 requests coming in from India and abroad.

Sources close to the development say that a true picture would emerge only on March 20, when the deadline closes for the submission of Expression of Interests (EoIs). A good number of the applications are from lawyers representing various firms, individuals, consultancies, private equity firms and companies,” they said.

Retired judge to oversee


The Satyam board, which met here on Friday, announced that Justice (Retd) S. P. Bharucha, former Chief Justice of India, had agreed to oversee the sale process of the company. The board met Mr Bharucha in Mumbai on Tuesday and persuaded him to supervise the bidding process to ensure transparency in selecting the strategic investor.

Satyam, however, has not disclosed the names of these entities. “We will send Request for Proposals to all the registered entities that have shown interest to take part in the process,” a Satyam spokesperson said here. The registered entities are required to submit the EoIs along with proof of availability of funds to the tune of Rs 1,500 crore by March 20, 2009.

iGATE joins race


iGATE, which had earlier announced that it was interested in only one Satyam vertical, sprang a surprise by announcing that it too had joined the race.

“We continue to be concerned about the probability of significant value erosion at Satyam. However, our interest to pursue this transaction is subject to the evaluation of the financial position of Satyam and the extent of its possible value erosion,” Mr Phaneesh Murthy, Chief Executive Officer of iGATE, said.

“We still believe that it is a long shot for us to consummate this transaction in its current form” he said.

According to the SEBI-approved plan, the Satyam board would consider the EoIs and short-list the prospective bidders. Only they would be given access to the financial, business and legal issues. This would be followed by submission of financial and technical bids, the penultimate step in the selection of the investor.

The Satyam scrip, however, continued to slide, though marginally on Friday.

Murty heads to US

Mr A. S. Murty, Chief Executive Officer of Satyam, told the board that he would go to the US as part of the confidence-building efforts.