Three Indian bidders are left in the fray to participate in the open auction for the purchase of Satyam Computer Services after the deadline to register expired on Thursday. There are unconfirmed reports that a couple of foreign companies too registered. The Hinduja group and HCL Technologies did not come forward to register.
According to sources IBM decided not to pursue its plans to participate in the bidding. As the talk of IBM backing out spread Satyam’s stock took a beating at the Bombay Stock Exchange (BSE) tumbling down by 3.18% and closed at Rs. 47.20.
The three Indian bidders who will compete with one another for a controlling stake of 51 per cent in the IT Company are L&T, B. K. Modi’s Spice Group and Tech Mahindra. These bidders would have to submit detailed Expression of Interest (EoI) and proof of availability of at least Rs. 1,500 crore ($290 million) before March 20.
The board of directors of Satyam is scheduled to meet in Hyderabad on Friday and evaluate the bids with the assistance of the investment bankers Goldman Sachs and Avendus.