Overtures from buyers begin

The new board of Satyam Computer Services confirmed it has received buyout proposals from Indian and foreign firms besides a favourable response from banks for credit to meet the company's cash requirements.

“All I can say is that we have been approached by potential buyers,” board member Tarun Das told reporters here.

He added the board will also discuss a proposal to seek government guarantee on loans to be taken by the Hyderabad-based software services firm to meet its cash requirements. The firm needs cash to pay salary for it’s over 50,000 employees, both in India and abroad, and to meet other monthly expenses.

The board, which will meet for the third time on January 22 and 23, will also discuss the appointment of a new chief executive officer (CEO) and chief financial officer (CFO) for Satyam, said Das who is also chief mentor of the Confederation of Indian Industry (CII).

Meanwhile, AM Naik, chairman of India’s largest private sector engineering firm Larsen & Toubro (L&T), today met senior officials in the Ministry of Corporate Affairs (MCA). “I am concerned about my stake in Satyam,” Naik told reporters after the meeting the MCA officials. He did not comment, though, on what his company wanted from the ministry.

Senior L&T executives also held a one-hour meeting today with LIC, which is one of the biggest institutional shareholders in Satyam. L & T holds 4 per cent in Satyam.

L&T — which is now one of the largest shareholders of Satyam with a 4 per cent stake — sees a lot of synergy between the core strengths of the beleaguered software giant with that of L&T Infotech, its unlisted information technology subsidiary.

Essar group company, Aegis BPO, too is formally understood to have evinced interest in buying Satyam's BPO business. "The issue is complicated. We're waiting for their response after which we will give details," said a senior official from Essar.

Aegis BPO, according to the source, wants to tie up Satyam's IT services business with its BPO business to offer clients "a suite of services".

However, highly-placed sources aver that the new board well recognises that it's the potential liabilities that could arise from the 12 class-action suits in the US that are acting as a major deterrent to potential buyers.

"Talks are on with merchant bankers. However, the potential buyers — both foreign and domestic — are waiting to see how bad the news can get. Till now, they have no clue as to what's happened with the cash," an industry source close to the developments, pointed out.