Satyam readies for bidders

By Lisa Kerner

Charlotte, N.C., March 24 - Satyam Computer Services Ltd. submitted a letter to the Securities and Exchange Board of India outlining the process it will follow under SEBI takeover regulations to select an investor, it was reported in a form 6-K filed with the U.S. Securities and Exchange Commission.

Requests for proposals were sent to registered bidders on March 13, and submissions of expressions of interest were due Friday, Satyam said.

Satyam previously announced that SEBI approved a bidding process to select an investor to acquire a 51% interest in Satyam, a Hyderabad, India-based outsourcing company.

Qualified investors must have proof of available funds amounting to $290 million, according to the filing.

Satyam said the successful bidder "shall not sell or dispose of any material assets or undertaking of the company for a period of two years" without special consent and will not discontinue Satyam's main business.

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

As previously reported, Satyam 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, throwing the company into turmoil.

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