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Satyam bidders will not get to see A/cs before bidding

This article was posted on Feb 15, 2009 and is filed under Press Releases

The suitors seeking to take over the scam-hit Satyam Computers will not be able to go through the restated financial statement or the third quarter results prior to the bidding, a senior company official said. “Obviously… (the bidders would not be able to see them as these documents would not be prepared by then). Considering the nature and extent of the fraud, it will take quite some time to make them. The bidders will have to go by their judgement of the company and its intrinsic value and they all know what is the position of the company,” Satyam Chairman Kiran Karnik told PTI.

He said with market regulator SEBI amending the takeover Code, this move will help the company to move quickly on the sale process.

Satyam’s investment bankers — Goldman Sachs and Avendus– are preparing the bidding norms for suitors and are learnt to have stressed on the credential of promoters and details of their other businesses, if any, to avoid a similar situation which Satyam found itself in after its founder and Chairman B Ramalinga Raju disclosed fudging the company’s accounts on January 7.

The other criteria, sources said, could be the experience of the suitor in running large scale businesses (the suitor though need not be an IT company), audited revenue for the last seven years and their networth.

source: Hindustan Times

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