Satyam to begin bidding process to find majority investor

By Lisa Kerner

Charlotte, N.C., March 6 - The Securities and Exchange Board of India approved a bidding process to select an investor to acquire a 51% interest in Satyam Computer Services Ltd.

The process, according to Satyam, is expected to include:

• A subscription by the selected investor of newly issued equity shares representing 31% of the company's share capital;

• A requirement that the investor make a mandatory minimum public open offer to purchase a minimum of 20% of the company's share capital; and

• A subsequent subscription by the investor to acquire a total of 51% of Satyam's share capital, if necessary.

Satyam said qualified bidders are expected to have total net assets in excess of $150 million.

In January, Satyam's government-appointed board of directors announced it had retained Goldman Sachs and Avendus to assist in the review of strategic options including identifying strategic investors and obtaining expressions of interest.

As previously reported, Satyam, a Hyderabad, India-based outsourcing company, was thrown into turmoil when its chairman and founder, B. Ramalinga Raju, unexpectedly resigned after admitting he overstated the company's cash and bank balances by $1 billion and inflated profits over the last several years.

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