Satyam may go to liquidation if auction is delayed: B K Modi

Satyam may go to liquidation if auction is delayed: B K Modi
PTI
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First Published: Sun, Mar 01 2009. 05 32 PM IST
Updated: Sun, Mar 01 2009. 05 32 PM IST
New Delhi: Satyam Computer, the troubled IT firm, will be liquidated if the new government-appointed board does not speed up the process of selling a majority stake to a qualified bidder, NRI industrialist B K Modi warned on Sunday.
“Follow (the) company law board and Sebi’s directions as they have cleared the sale of shares in Satyam as a special case to save the company. Talks like fixing a reserve price (as demanded by some) is nothing but tactics to delay,” Modi said from the US.
Modi, a potential bidder to buy the company, has been talking to lawyers in the US on the course of litigation relating to Satyam in the North American country.
“We are also talking to clients in the USA and in other parts of the world like Malaysia... Most of them are concerned about the future of the company. They have indicated that they will wait till March this year and then decide on whether to remain with Satyam or not,” he said.
There is no logic for fixing any reserve price for a company in which things are taking place on a day-to-day basis and the new board has not kept the market posted of the developments, he said, adding if things continue like this, Satyam will go for liquidation.
Besides the Modi group, domestic engineering major L&T and the Hinduja group are also interested in acquiring Satyam.
A board member of L&T, which has already purchased about a 12% stake in Satyam from the open market, on Saturday said that the company was waiting for the Satyam board’s decision on the pricing mechanism to decide on its next step.
According to sources, the Satyam board has taken a decision on the modalities to sell majority stake in the company and is likely to announce the process soon.
Modi also endorsed the idea of appointing a Supreme Court judge (either sitting or retired) to oversee the sale process to ensure full transparency.
Earlier this month, the Company Law Board allowed Satyam’s government-appointed board to go ahead with a public auction plan to bring in new owners for the company.
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First Published: Sun, Mar 01 2009. 05 32 PM IST
More Topics: Satyam | B.K. Modi | Modi Group | Hinduja | L&T |