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Satyam Seeks to Wring Maximum Price from Its Sale

It was supposed to be a sealed bid auction, winner take all
By Maureen O'Gara
Article Rating:
April 3, 2009 05:00 PM EDT
Reads:
 1,854

Satyam, the corrupt Indian outsourcer whose founder lied about its revenues for years, has changed the rules of the redemptive sale of a majority 51% stake in the company.

It was supposed to be a sealed bid auction, winner take all.

Now it says - evidently trying to wring every dime out of it - that if anyone comes within 90% of the highest bid, they'll have a runoff auction with the highest bid being the floor.

At least one company has dropped out, complaining that the due diligence materials Satyam supplied to those who were interested weren't very transparent. The books haven't been restated yet and Satyam's liabilities could be substantial.

Its market cap was $606 million when the market closed in New York Thursday, down from $7 billion last May.

It's still unclear whether IBM is involved. U.S. private equity house WL Ross may be interested.

Satyam is hoping to identify its new owner by next week. Its previous deadline was April 30.

Published April 3, 2009 – Reads 1,854
Copyright © 2009 SYS-CON Media, Inc. — All Rights Reserved.
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Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.

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