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Spice eyes Satyam but not interested in piecemeal buyout

This article was posted on Feb 2, 2009 and is filed under Stock News

As prospective bidders for crisis-ridden Satyam Computer Services start lining up, industrialist BK Modi’s Spice Communication joined the fray to buy out the troubled IT firm. Modi, however, made it clear that the telecom group would be interested in buying out Satyam and that it was not looking at a piecemeal acquisition. He added that he saw Rs 2,000 crore as a benchmark for Satyam.

“It (Satyam’s price share value) has to between Rs2–Rs 60 depending on the auction price. We will bid in an auction because that will be competitive, [and based on that] the number of shares will be decided,” Modi said, adding that the company did not have any Satyam shares either now or in the past.

Modi also said the Spice had a full team in place for Satyam, in case of a takeover. He added that Spice had written a letter to the Satyam board but had not received a response yet.

“I understand that they (the Satyam board) are meeting on the February 5,” Modi said, adding that Satyam needs an immediate infusion of capital of around Rs 2,000 crore. Money should enter Satyam through preferential allotment of shares, he added.

Spice, Modi added, did not fear liabilities. “We are ready to take some risk on this. We are ready to go on as-and-where basis, provided there is an open auction system. There should be an electronic auction, which is now quite prevalent and is transparent.”

source: Moneycontrol

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