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Top Satyam executive to sell shares in open offer

This article was posted on Jun 11, 2009 and is filed under Stock News

NEW YORK: One of the top executives of Satyam Computer is considering selling his shares in the open offer beginning tomorrow, even as the scam-hit IT firm is trying to come out of woods under its new owner and guided by government-appointed directors.

Without naming the executive, NYSE-listed Satyam said in a regulatory filing that the person was mulling selling the shares held in the company, but no other executive officers and directors have indicated any such plans.

The disclosure coincides with the company’s board deciding to remain neutral on the offer and not endorse it, fearing it could tantamount to supporting sale of shares and could become “negative statement” about the company’s fundamentals.

“The company, after making reasonable inquiry of its executive officers, directors, affiliates and subsidiaries, has received indication from one of its executive officers that such executive officer is considering tendering all or a portion of the shares held of record or beneficially owned by such executive officer in to the open public offer,” Satyam said in a filing here with the US regulator Securities and Exchange Commission.

“The remainder of such executive officers, directors, affiliates and subsidiaries who responded to the company’s inquiry have indicated that they intend to hold the shares held of record or beneficially owned by them.

The filing further said that Venturbay, which holds 31 per cent equity, may not tender its shares into the offer, as it is itself making the open offer for purchase of 20 per cent stake.

In addition, L&T and WL Ross Funds, which were bidders for Satyam’s 31 per cent stake, have also agreed not to deal in the company’s shares for a period of six months starting April 22. Accordingly these entities might not tender their share in the open offer.

They were as many as 141 bidders comprising Indian as well international corporate and private equity firms for Satyam in the first round which narrowed down to 7 in the second round and then to 3 in the third round of bidding.

source: Economictimes

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