Satyam starts bidding process for its sale

March 9th, 2009 - 12:48 pm ICT by IANS  

Hyderabad, March 9 (IANS) Fraud-hit Satyam Computer Services Monday said that it had started the process to sell 51-percent majority stake in the company by way of a global auction after India’s market regulator gave it the go-ahead last week to do so.
“Commencing today (Monday), all interested bidders should register their interest in participating in the bidding process,” the company said in a regulatory filing.

The bids would have to come in by March 12, the statement added.

The company also said the auction would be overseen by a former Chief Justice of India or a former Supreme Court judge appointed by the company.

The Securities and Exchange Board of India (SEBI) Friday gave its permission to Satyam to facilitate a global competitive bidding process so as to sell the majority stake to an investor.

Each interested bidder will be sent a request for proposal shortly after March 12 and asked to submit a detailed expression of interest together with the proof of availability of funds of at least Rs.15 billion ($290 million), the release said.

Thereafter, based on submitted expression of interest, eligible bidders will be short-listed and given access to business, financial and legal diligence materials relating to the software bellwether hit by a $1.43-billion fraud perpetrated by its founder and former chairman B. Ramalinga Raju.

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