US-based iGATE pulled out of the bid for fraud-mauled Satyam Computer Services on Friday, as the fraud-mauled company’s government-appointed board discussed expressions of interest received from potential suitors to acquire a majority stake in the company. The submission of bids ended at 5 pm. A shortlist of bidders is expected before the end of next week.
Satyam’s financials are a key issue after its ousted chairman Ramalinga Raju admitted to doctoring accounts for years.
The board also discussed a roadmap, which included as to what are the financial details of the company that would be shared with the short-listed bidders. Company sources said that the board will shortlist the bidders before the end of next week and set in motion the next leg of bidding process, when the bidders would be given all the documents needed for due diligence.
However, the company did not issue a statement after the board meeting. “We have nothing to say today,” a spokesperson said. Among the companies that have put in their EOI along with a proof of Rs 1500 cash are Larsen & Toubro, Spice Group of B K Modi and Tech Mahindra.
Meanwhile, ratings agency Fitch has withdrawn all ratings on Tech Mahindra after the company bid for the assets of Satyam. “Given the uncertainties... and consequent financial impact on TML, the agency is unable to take a rating action at the time of withdrawal,” it said.
Meanwhile, ratings agency Fitch has withdrawn all ratings on Tech Mahindra after the company bid for the assets of Satyam. “Given the uncertainties... and consequent financial impact on TML, the agency is unable to take a rating action at the time of withdrawal,” it said.