Satyam sale gets green light

Satyam has been given the go-ahead to sell a 51% stake in it, which will trigger an auction for the Indian IT services provider.

Satyam has been given the go-ahead to sell a 51% stake in it, which will trigger an auction for the Indian IT services provider.

Global suppliers such as IBM and Oracle, as well as multinational Indian suppliers, are said tobe interested in reviving the company.

The Securities and Exchange Board of India approved that Satyam can facilitate a global competitive bidding process.

"Qualified investors are expected to have total net assets in excess of $150m," said Satyam.

Satyam was at the centre of a $1bn accounting fraud when its former chairman B Ramalinga Raju admitted that he had falsely reported the company's results.

The fraud shook the firm and customers and staff have been weighing up their options. But the firm has a wealth of skills and customer relationships which will be attractive to potential acquirers.

Phil Morris, European managing director at sourcing consultant Equaterra, said it will require a strong stable company to put Satyam back to where it was before the fraud. He added that the company's skills base and customer portfolio are impressive.

Bindi Bhullar, head of marketing and alliances Europeat HCL, said there will be a lot of interest in Satyam from inside and outside India. "There has to be a lot of interest because it is a great opportunity. Satyam has a lot of good clients."

But he warned that due diligence will have to be "spot on" because "everything they put out will have a question mark against it."

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