Satyam to invite takeover bids, fire auditor PW | india | Hindustan Times
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Satyam to invite takeover bids, fire auditor PW

india Updated: Feb 22, 2009 02:15 IST
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Satyam's new board on Saturday decided to invite bids from strategic investors to steer the company and fire its statutory auditor Price Waterhouse, which failed to detect a massive accounting fraud in the IT giant.

The decision of the government-appointed board will allow suitors to make formal offers to acquire Satyam, whose books, according to its founder B Ramalinga Raju, was fudged for many years.

Engineering giant Larsen and Toubro has acquired over 12 per cent stake in Satyam through open market transactions, while BK Modi-led Spice Corp has said it was interested in acquiring a controlling 51 per cent stake in the IT major -- ranked the fourth largest before the fraud came to light.

The Company Law Board on Thursday gave its nod for sale of a minimum 26 per cent stake in Satyam.

A statement from Satyam said the board, chaired by Kiran Karnik, also recommended to the government the removal of auditor Price Waterhouse and appointment of a new bookkeeper.

PW's partners S Gopalakrishnan and Talluri Srinivas, who were handling the Satyam account, are currently in judicial custody awaiting trial.

The statement also said Satyam has received new orders worth US$ 250 in the last seven weeks.