Satyam sees decision on investor in 6 to 8 weeks
Satyam Computer Services is likely to find a strategic investor in about two months, the outsourcing firm hit by India's biggest corporate fraud said in a staff newsletter.india Updated: Feb 25, 2009 12:22 IST
Satyam Computer Services is likely to find a strategic investor in about two months, the outsourcing firm hit by India's biggest corporate fraud said in a staff newsletter.
"It is likely that the answer to who is the strategic investor and further details surrounding this will emerge from a competitive, fair and transparent method in 6 to 8 weeks," said the newsletter, which was dated on Tuesday and emailed to Reuters on Wednesday.
"The intent is to progress in a swift manner, but the intricacies of diligence and the need for confidentiality with bidders will need due consideration and time," it said.
Chairman Kiran Karnik told Reuters on Tuesday that New York listed Satyam hoped to invite expressions of interest from potential bidders by the end of the week.
Potential suitors include Larsen & Toubro, India's top engineering and construction firm, Hinduja Group and Spice Group.
The newsletter said Satyam's government appointed board, which will meet again in the southern city of Hyderabad on Thursday, was exploring all options for inviting a strategic investor who had a strong reputation and financial capability.
Satyam has been struggling for survival since Jan 7, when its founder and chairman Ramalinga Raju quit after disclosing profits had been overstated for years and assets falsified.
"The unusual situation where Satyam's financial accounts are in question has its complexities in arranging the induction of the new investor," the newsletter said.
Karnik said on Tuesday the restatement of Satyam's accounts would take time, and bidders would have to make their decisions based on information other than audited accounts of the company.
The board appointed KPMG and Deloitte in January to restate Satyam accounts.