Sebi clears Tech M open offer for Satyam

Asks Tech M to share details with shareholders

The Securities and Exchange Board of India (Sebi) has cleared the open offer for Satyam Computer Services by Tech Mahindra.

However, the regulatory body has asked Tech Mahindra to share with the company’s stakeholders the information Satyam had provided to the bidders. Sebi had issued its observations on the open offer on May 27, according to the regulatory body’s site.

“Satyam had given vital information about the company to the bidders, which Tech Mahindra may have to provide to shareholders along with the final offer documents (which would be filed in 2-3 days),” said sources close to the development. They added that Tech Mahindra has sent a clarification to Sebi following the observation notice issued by the regulator on May 27.

This comes as a precursor to Tech Mahindra’s open offer for acquiring 20 per cent of Satyam at a price of Rs 58 per share. The total cost will be Rs 1,154.66 crore. The open offer commences on June 12 and closes on July 1, 2009.

Meanwhile, Satyam’s stock price surged 11 per cent to Rs 63 today on rumours that Tech Mahindra will be revising the open offer for the company. The company’s stock price touched an intra-day high of Rs 64.60 — an increase of 14 per cent.

The stock price of Tech Mahindra, which has already acquired 31 per cent of Satyam at a cost of Rs 1,756 crore, were also up 7 per cent at Rs 559.30 at the close of trading. But the scrip touched an intra-day high of Rs 574 — up by 10 per cent.

Tech Mahindra’s senior management refused to comment on the issue.