Satyam informs market regulator on bidding process

March 25th, 2009 - 12:06 am ICT by IANS  

Ramalinga Raju Hyderabad, March 24 (IANS) Scam-hit Satyam Computer Services Ltd has informed the Securities Exchange Board of India (SEBI) on its bidding process under the market regulator’s amended takeover regulations for selecting an investor to buy majority stake in the company, the IT bellwether said late Tuesday.
“A letter relating to the process followed by the company pursuant to regulation 29A of the SEBI takeover regulations to select an investor and the in-principle exemptions/relaxations granted by SEBI from applicable regulations and guidelines has been submitted,” the company said in a statement.

The letter has also been sent to the US Securities and Exchange Commission (SEC) as Satyam is listed on the New York Stock Exchange (NYSE). Similarly, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), where Satyam is listed and traded, have been notified about the submission.

It may be recalled that the Company Law Board principal bench in New Delhi authorised the company’s board of directors to select an investor, subject to certain conditions.

Engineering and construction major Larsen and Toubro (L&T), Mahindra and Mahindra’s (M&M) IT arm Tech Mahindra and B.K. Modi-promoted Spice group are among the bidders for acquiring 51 percent stake in the country’s fourth largest software major.

The government appointed the new board in January after Satyam founder B. Ramalinga Raju confessed to a Rs.78-billion accounting fraud.

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