Satyam says stable; geared for stake sale, land pledge
Beleaguered Satyam is looking at pledging land it owns if funds are needed, but is confident it has achieved financial stability for the time being, its Govt-appointed chairman said, reports HT Correspondent.business Updated: Feb 12, 2009 20:56 IST
Beleaguered Satyam Computer Services is looking at pledging land it owns if funds are needed, but is confident it has achieved financial stability for the time being, its government-appointed chairman Kiran Karnik said on Thursday. He said the bidding process for a possible strategic stake sale would be announced in about 10 days.
Speaking before the start of a board meeting to discuss Satyam’s financial status, Karnik told reporters that good receivable for the company were also “confidence boosters.”
“We are looking at financial stability and more land will be pledged if we need more funds,” said Karnik, adding that the Board was also looking at the issue of employee retention and customer stability to steady the company’s financial position.
The new board, which was constituted by the government after the company’s former chairman Ramalinga Raju, admitted to a multi-million dollar scam in early January, named KPMG and Deloitte as its auditors to restate its books.
Karnik pointed out that if the restatement of accounts took too long then the board could decide to expedite the sale of the company. He said that many potential suitors had approached Satyam..
“We plan to outline the bidding process for a possible sale in the next 10 days’ time. It’s a work in progress and I can’t give a deadline to it. I can only tell you, this needs to be done quickly,” he said.
The board has appointed Goldman Sachs and investment bank Avendus, to look for strategic investors interested in Satyam.
The IT company had earlier written to Sebi seeking relaxation of takeover norms to enable suitors make an offer taking the average of more recent share prices instead of the 26-week average pricing rule being followed currently.
PTI reported from Hyderabad that Satyam’s employees may be getting their February salaries but have to wait till the re-statement of the company accounts is done to get a part of their variable pay, linked to the company's performance.