Satyam yet to disclose the guidelines for strategic investor

The government-appointed board of the beleaguered Satyam Computer Services met here today but the discussions in the one-day meeting remained inconclusive and its outcome was not disclosed.

The board, which was exploring all options for inviting a strategic investor, was expected to finalise the guidelines and procedures for preferential allotment of shares and shortlist the potential bidders.

However, at the end of its meeting today the board members did not say anything in this regard.

Satyam had earlier informed that the guidelines and procedures were discussed by the board and steps to apply to the Securities and Exchange Board of India for approvals were in an advanced stage. However, as the company's financial accounts were in question, complexities have cropped up in arranging the induction of a new investor.

Though the intent is to progress in a swift manner, the board was stated to be of the view that the intricacies of diligence and need for confidentiality of the bidders would need due consideration. Thus, it was likely to take another 6-8 weeks to know about who would be the strategic investor in the company.

As of now, L&T, Spice Group, Tech Mahindra, Hinduja Group, Fujitsu and IBM were reported to be in the race to acquire Satyam.

The Company Law Board had already exempted Satyam from obtaining approval of shareholders to increase its authorised share capital to Rs 280 crore from Rs 160 crore and proceeding with preferential allotment of shares to a strategic investor.