Many suitors approached us, but no part-sale: Satyam

Hyderabad, Jan 27 (PTI) Satyam Tuesday said it would
consult the government and market regulator SEBI on the many
suitors who have evinced interest in it, but is not open for
selling the business in parts.

Indicating it was not playing the courtship game with
engineering giant L&T, which acquired over 12 per cent stake
in the IT firm, Satyam said: "It should not be taken as an
indication of support by the government-nominated board for
change of control of Satyam at this stage."

Announcing appointment of Goldman Sachs and Avendus as
investment bankers to advice on options like finding strategic
investors and getting expressions of interest after the board
meeting here, Satyam said: "Appropriate, fair and transparent
measures for enabling open bids will be devised... in
consultation with SEBI and the government of India..."

Satyam, which also appointed Boston Consulting Group as
management advisers, said that it has received several
proposals from corporate entities as well as private equity
firms for the company as a whole and in parts.

Ahead of the board meeting, A M Naik, Chairman of L&T,
which was considered a front runner for Satyam, said Tuesday
that stake in the IT firm could be raised to 15 per cent but
there was no decision as yet on acquisition of the company.

"Some corporate action will take place in the near future,
but we can't comment on taking over Satyam at this stage," he
said, but added that his company was in touch with "all the
decision makers."

Stating that salaries to employees for January would be
paid as scheduled from internal accruals and receivables, the
board said that "it had concluded most of the discussions
relating to financing requirement of the company.

While the much awaited appointment of CEO and CFO is yet
to materialise, the board said a plan of action on the
management structure would be released this week.

On the controversy over the staff strength, the board
said there are sufficient data points to reinforce the earlier
reported numbers - 53,000. "Further validations have been done
relating to the employee numbers of Satyam..."

Board member T N Manoharan, who chaired today's meeting,
said: "The reasons for the same (a corporate entity acquiring
large portion of Satyam shares in open market) are best
explained by the purchaser."

Manoharan's comment's in the company's statement did not
name L&T, which last week acquired about 8 per cent equity in
the open market to take its stake to over 12 per cent.

The Board decision could dash hopes of Essar group's
Aegis, which declared its intention to acquire Satyam's BPO
business, with the IT company saying that "a sale of parts of
Satyam at this stage would be contrary to the mandate of
regulating the affairs of Satyam as a growing concern, as
stipulated by the government of India.

"It is, therefore, not an option that is being evaluated
currently," the company said in its statement.

Stressing on the need for a fair and transparent approach
to the bidding process, Manoharan said it is important to keep
in view that this is now a government-administered company
reporting to the CLB and MCA.

On customers, member Kiran Karnik said: "We have been
assured by the action of some of our key customers, who have
sent strong messages to other vendors to refrain from poaching
Satyam's associates or business." PTI TEAM
RKM
NNNN