Potential Bidders For Satyam Computers

Published on: Fri, Mar 13, 2009 , Updated on Fri, Mar 13, 2009
Tags: Satyam, sale, bidders, outsource company
Courtesy: www.nytimes.com – 13th March

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The Indian government and the newly appointed corporate board, struggling amid the mess-up, are trying hard to save Satyam from bankruptcy or dissolution. They have asked the bidders’ interest in buying a 51% stake, even the future of the company is uncertain.

It can be the most bizarre among the corporate auctions. An outsourcing company whose reputation severely damaged by fraud, unavailability of certified salary figures, a long line of pending lawsuits, and key customers heading out of the door; there goes the weirdest facts, one by one. Yet, a few potential bidders have come up with plans to buy Satyam.

By Thursday afternoon, a handful of bidders, including Larsen and Toubro, Spice, Tech Mahindra Group and BT Group of Britain have raised their hands but the deal has not attracted the big-name buyers.  The market capitalization of Satyam was $7 billion last May, but now it’s slightly above $600 million. Even though Satyam is the fourth largest Indian outsourcing company, with about 53,000 employees, a close scrutiny is going on in every aspect, after the co-founder’s confession that he had fabricated the details in the balance sheet.

The chairman of Spice informed Times of India that the law suits could cost $440 million-$ 840 million, but experts say that the figures may go even higher.

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