Indian Bidders Eye Stakes in Scandal-Hit Satyam
Satyam, once India’s fourth-largest software exporter by revenue, has been scouting for a buyer that will help revive the firm after its founder, B. Ramalinga Raju, revealed in January he overstated the company’s profit over several years and created a fictitious cash balance of more than $1 billion. A government appointed board has said it may sell as much as a 51% stake in Satyam.
Spice Group Chairman B.K. Modi said the company submitted notice of interest in obtaining a Satyam stake on its own but said it would evaluate any proposal for a joint bid from another firm. Spice has businesses in India’s telecommunications, entertainment and financial industries.
Tech Mahindra, an Indian software exporter focused on telecommunications, told the stock exchange it has expressed interest in Satyam. Tech Mahindra said recently it needs a pro forma statement of accounts and some clarity on Satyam’s liabilities and a business plan before submitting a formal bid.
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This article was originally posted on WSJ.com