Friday, February 20, 2009

Satyam board to devise process for auction

Distressed IT firm Satyam's board is likely to discuss ways of taking forward the process of conducting a public auction for inducting one or more strategic investors, in its meeting on Saturday.

The Company Law Board today allowed the IT firm to conduct a public auction for inducting one or more strategic investors and to raise its equity base.

The government-appointed board of Satyam, which the company officials said is meeting on Saturday, is likely to discuss the ways for taking forward the process of auction.

In its order, CLB Chairman S Balasubramanian said that it was necessary for Satyam to bring in long-term funds by inducting a strategic investor and accordingly its board can pass a resolution to enhance the company's authorised equity capital to Rs 280 crore, comprising 140 crore shares of Rs two each, from Rs 160 crore currently.

Ahead of the meeting of Satyam's directors, one of the suitors, B K Modi-led Spice group is holding a board meeting tomorrow to decide on its bid for the IT company. Modi had earlier suggested an e-auction for the sale of stake in Satyam, where it is seeking preferential allotment of shares amounting to a controlling stake.

No comments: