Friday, March 13, 2009

Satyam Bidding Process

At last 8 bidders have entered the bidding fray for the Indian Enron- Fraud hit Satyam Computer Services. Among the 8 bidders are some of the top multinational companies including L&T, Spice Comm. and Tech. Mahindra.
Tare MNC suitors, who have entered the fray through special purpose vehicle (SPV) structures in an apparent move to insulate themselves from future legal risks. The structure and exact nature of the SPVs are not clear at this stage.
The next stage in the bidding process is the submission of the expression of interest (EoI) along with proof of $300 million cash. This is supposed to happen by March 20. At this stage, the bidders will have access to a ‘broad set of numbers’, as they get ready to put in a price bid.

While L&T being the most powerful contender with nearly 1800cr+ Rs inventory to show, Spice Comm. has entered the bidding by selling its 40.8% stakes in Spice to Aditya Birla Group's Idea Cellular last year making its bid strength to increase to 2720cr Rs.
Another entrant to bidding is Tech. Mahindra which currently is not having sufficient balances
to bid and would require to raise another 1000cr+ Rs. so as to be in the bidding arena.....

1 comment:

Shaurya Srivastava said...

Lets hope that Satyam gets back to its normal days or even better.....Indian IT Industry should rise after this.....Best wishes with them!!!