Friday, February 27, 2009

Investment bankers recommend 51 pc stake sale in Satyam

Goldman Sachs and Avendus, investment bankers to Satyam Computer, are learnt to have proposed 51 per cent stake sale-- 31 per cent via preferential equity and 20 per cent through open offer-- in the IT company to a strategic investor.

According to a source associated with the process, the Satyam board which met today in Hyderabad, is understood to have discussed the proposal and would approach market regulator SEBI on Monday on the pricing issue with regard to both preferential as well as open offer routes.

After getting the green signal from the market regulator, the Satyam Board would issue Expression of Interest (EOI) to the prospective bidders, the source said.

According to the source, the investment bankers during their presentation said it would be better for the company to dilute 51 per cent equity, which should include 31 per cent preferential equity and 20 per cent open offer, to a strategic investor.

Suitors Hinduja Group and B K Modi-promoted Spice Group had said they would prefer taking 51 per cent in Satyam.

"It will be preferred if somebody can get 51 per cent..." Hinduja Group CFO Prabal Banerjee had said.

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