Satyam board meeting begins

The board meeting of Mahindra Satyam has begun here to clear proposal for the second round of preferential share allotment which would increase its new owner Tech Mahindra's stake in the company.

The meeting is also likely to approve a proposal to extend the deadline for restating accounts to March 2010.

The meeting is being attended by the six nominee directors of the government and the four directors appointed by Tech Mahindra.

Earlier, Mahindra Satyam Chairman Kiran Karnik had said the board would meet on July 10 to consider the proposal of Tech Mahindra to raise its stake through preferential allotment of shares.

Tech Mahindra had to go for another round of preferential allotment of shares as its open offer to acquire 20 per cent additional stake in Mahindra Satyam was unsuccessful.

Yesterday, Tech Mahindra said the company's open offer was for acquiring additional 20 per cent of Satyam Computer (now Mahindra Satyam) was not successful. So now the company would approach Mahindra Satyam with a request for a preferential offer that will bring TechM's stake in the firm to 42.7 per cent, it added.