B K Modi throws his hat in the ring

Bhupendra Kumar Modi of Spice Corp today sent an expression of interest to the new Satyam Computer Services board to acquire the fraud-hit company. “Our board met today and we have informed the Satyam board of our intent,” Modi told Business Standard.

Modi had sold his stake in mobile services company Spice Telecom to Idea Cellular last year for over Rs 2,000 crore. Since then, Modi said he has been exploring opportunities in IT. In early January, before Satyam founder B Ramalinga Raju disclosed that there was a Rs 5,000-crore gap in the company's bank deposits, Modi had formed a team to look at Satyam. “It is a sizeable company but not one that we cannot take on,” he said.

Modi indicated that he could raise more money for the acquisition, if required. “Our companies have further cash and there are no borrowings. I have not pledged my shares to anyone,” he said. So far, added Modi, he has not acquired a single Satyam share.

According to Modi, Satyam’s acquisition fits in to his group’s plan to go global and be present across IT, BPO, communication and entertainment verticals. For the acqusition, Modi has floated a special purpose vehicle called Spice Innovation. The expression of interest has been sent by this company.