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No new numbers for suitors

The suitors seeking to take over the scam-hit Satyam Computers will not be able to go through the restated financial statement or the third quarter results prior to the bidding, a senior company official said.

india Updated: Feb 16, 2009 11:30 IST

The suitors seeking to take over the scam-hit Satyam Computers will not be able to go through the restated financial statement or the third quarter results prior to the bidding, a senior company official said.

"Obviously... (the bidders would not be able to see them as these documents would not be prepared by then). Considering the nature and extent of the fraud, it will take quite some time to make them. The bidders will have to go by their judgement of the company and its intrinsic value and they all know what is the position of the company," Satyam Chairman Kiran Karnik said.

He said with market regulator SEBI amending the takeover code, this move will help the company to move quickly on the sale process.

Satyam’s investment bankers Goldman Sachs and Avendus are preparing the bidding norms for suitors and are learnt to have stressed on the credential of promoters and details of their other businesses, if any, to avoid a repetition of its present predicament.

Other criteria, sources said, could be the experience of the suitor in running large scale businesses (even non-IT), audited revenue for the last seven years and their net worth.

When asked about the likely criteria, Karnik did not give details on the norms but said, "The norms will be in line with what SEBI has sought in the amendment, like transparent, open, and competitive process and no favour to any particular acquirer.

"We are finalising the steps and when we approach SEBI we cannot give a give timeline," Karnik said.

Satyam's suitors include engineering firm L&T, BK Modi- promoted Spice Corp, Tech Mahindra and the Hindujas. Its shares closed at Rs 46.30 on the Bombay Stock Exchange on Friday.