Interest grows in Satyam acquisition


Interest grows in Satyam acquisition

Karl Flinders

Several companies have expressed an interest in acquiring Indian IT supplier Satyam either as a whole or in part.

A board meeting held today revealed that Satyam, which is at the centre of a $1bn accounting fraud scandal, has appointed Investment banks Goldman Sachs and Avendus to advise it on identifying investors and obtaining acquisition interest.

The government-appointed board at Satyam said: "The board has received several proposals from Corporate entities as well as from select private equity firms. Some have shown interest in evaluating Satyam as an integrated entity, while others have expressed interest in portions of Satyam's business. "

The statement said that a sale of parts of the business was not currently an option due to government regulations.

The company also said it has completed discussions related to its financing "which will help tide over the immediate, compelling operational expenses". Satyam said salaries for January 2009 would be paid out of its own funds.

The board has also appointed Boston Consulting Group as management advisors to support the firm's recovery.

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