Satyam stake auction not likely soon
The public auction for a stake in the beleaguered Satyam Computers is not likely to be held before end April - May, reports Mahua Venkatesh.india Updated: Feb 24, 2009 21:20 IST
The public auction for a stake in the beleaguered Satyam Computers is not likely to be held before end April - May. Potential suitors like Hinduja Group, Larsen and Toubro, Spice Group, iGate and Tech Mahindra are awaiting the details of the modalities on the e-auction before taking a final decision on the proposed deal.
Legal experts said that the company’s “data rooms” would need to be opened up for all those suitors who are short-listed, in the absence of any authentic information on either the financial front or legal, the exercise would need careful handling.
Though global audit firms KPMG and Deloitte have been entrusted with the job of restating the company’s account, they are yet to come up with the final version. The exercise is likely to take some time. The available records on accounts of the company are known to have been fudged by the tainted founder chairman B Ramalinga Raju. The board of the IT firm has also indicated that it may allow a sale of 51 per cent stake of the company.
It is learnt that the process has already been initiated. “We will work out the modalities at the earliest to support the move,” a government official told Hindustan Times. He added that statutory backing would be provides to facilitate the deal.
The investment bankers Goldman Sachs and Avendus Capital would chalk out the eligibility criteria.
“Valuation is an issue as all records are doctored and naturally it can be arrived at through a proper due diligence process,” Hammurabi and Solomon managing partner Manoj Kumar said.
First Published: Feb 24, 2009 21:15 IST