>Satyam (ANAGRAM)

SATYAM COMPUTER SERVICES
Event Update

SATYAM UNDER THE BIDDING HAMMER

Government and SEBI working in tandem has chalked out a definitive plan to offer a 51 percent equity equity to the prospective investor in Satyam.

The company would come out with the specific plan for the bidding process in the next few days.

Earlier Company Law Board (CLB) authorised the Satyam Board to make a preferential allotment of equity shares to a strategic investor and raised the company's authorised capital to Rs 280 crore from Rs 160 crore.

The plan has two riders among other conditions :

1. The bidder should have net assets of over $150 million.

2. Whoever wins the bid cannot sell equity shares for a period of three years from the date of the acquisition.

The process

The selected investor should subscribe to the newly issued equity shares, comprising 31 percent of the authorised share capital.

The investor should go for a mandatory minimum public open offer (at the same share price the investor paid for the subscription of new shares) for the remaining 20 per cent.

In case the investor falls short of 51 per cent stake after the two-step process, the option to subscribe to additional newly issued equity shares to reach the figure that gives controlling stake would also be available.

Is worst over for Satyam?

It seem so. The company has taken drastic steps to curtail expenses and survive on wake of unimaginable conditions.

The company is using the available bank funding in a controlled and phased manner to meet immediate and near-term operating requirements, including payments to vendors.

There were media reports of company receiving unsolicited offers from banks for funding.

Though, It is loosing some customers, there are few new orders as well. The company has bagged $250-million worth of deals over the past two months. According to the management, current orders are across industry verticals, technologies and geographies.

To see full report: Satyam