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Satyam looks for a new owner

Warwick Ashford
Monday 02 March 2009 09:50

Troubled Indian IT supplier Satyam is to invite formal bids from potential buyers this week.

It could be could be months before Satyam's accounts are restated, but the state of the business is clear according to the government-nominated board, the Financial Times reports.

The new board has asked newly-appointed auditors KPMG and Deloitte to restate the accounts since replacing former Satyam auditor, PwC.

Analysts have said it will be difficult to sell the company until this process has been completed and all lawsuits against Satyam have been settled.

The company faces several lawsuits after former chairman B Ramalinga Raju admitted in January that he had manipulated company accounts.

The revelation came in a letter to the company, in which Raju offered his resignation and confessed to inflating the company's financial figures.

At least one US law firm has said it will try to block any sale before outstanding legal matters are resolved.

Indian engineering group Larsen & Toubro is among the potential bidders for Satyam, according to the Financial Times report.

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