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Spice Corp shortlisted by Satyam board

Spice Corp shortlisted by Satyam board

Hyderabad: Three days past the deadline for submitting detailed expression of interest to acquire 51% stake in Satyam Computer Services Ltd, one of the bidders Spice Group that they have been informed by Satyam board of being short listed for the final phase of the competitive bidding process.

The deadline for submitting detailed expression of interest had passed on 20 March.

Citing a letter from Satyam, Spice Group chairman B.K. Modi told CNBC TV18 that his company will initiate the process of due diligence and was waiting for further details from Satyam regarding its financial status. Modi also said transparency continued to be an issue in the bidding process and hoped that it would be solved soon.

“We have sough to know who else is there because I think it’s important that in matter of transparency everybody knows that we are there, but we do not know who else is there. So, it’s important for a disclosure about who are the people who are going to the second stage," Modi told the TV channel.

Other two known bidders Larsen and Toubro (L&T) and Tech Mahindra however, refused to confirm or deny being short listed. “We have a commitment to the Satyam board not to discuss bid-process with the media till it is completed," said Deepak Marada, head of corporate communications at L&T said. He added it applied to all the bidders who had expressed interest in bidding for 51% stake in Satyam.

Director marketing of Tech Mahindra, Prasenjit Ghosh Roy also declined to comment citing similar commitments to the Board. Satyam’s chairman Kiran Karnik also refused to reveal any further information regarding the short listed bidders.

Satyam board is in the process of inviting bids from firms for acquiring 51% stake in the scam tainted company in a bid to revive it. Satyam has been losing clients and employees, besides its shares tanking on the stock markets ever since Satyam founder B. Ramalinga Raju revealed on 7 January of cooking the company’s account books to the tune of 7,136 crore.

US-based information technology firm iGates Corp., as well as the Hinduja Group had earlier pulled out of the bidding process.

Satyam shares fell 3.76 % on Monday to close at 42.25 on the Bombay Stock Exchange.

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