Satyam bidding process started last week where request for proposal was sent to many companies who have shown interest in taking over Satyam. Few of these names were - L&T, Spice Group, iGate, Hinduja group and also IBM, HP names were mentioned.
Due to ambiguity of pending class action suits, its impact and current financial situation of company, IBM and HP didn't even proceeded further while iGate and now Hinduja have stepped out of race. It leaves only two front runners - L&T and Spice Group. Both have shown a strong interest as it would be strategically a big step for any of them to acquire a large IT service provider company with presence in more than 50 countries and a good skilled resource base of more than 40,000.
On morning of 23rd March 09 L&T and Spice group have been selected for second phase of bidding. It has not been disclosed who else has qualified or have bid for Satyam. There are expected to be seven players who are shortlisted for second stage of bidding which may show Tech Mehindra also in race..
iGate has issues a statement before that its bidding price will be much lower than current market price. Typical market sentiements are also in line with this feeling and from the time bidding process has started, Satyam share is slidding down on Indian stock exchange. Today it has already gone down by 2.7% of its previous close 43.9 to 42.7 and still going low.
It is expected that Satyam share might trade in range of 30-40 this week because of high risk invovle in this bidding process (for company who will buy Satyam). Rating agency Fitch withdrew its AAA rating for Tech Mahindra citing the risks involved in bidding for the software company
24th March 2009
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Seems like Modi, Spice group chairman, is not happy how things are panned in Satyam bidding process. Name of all players are not revealed and goign forward news are not in public.
Also for bidders now there are mixed news in market. Business standard has reported that there are six bidders and not seven which may include IBM, HP and KKR Private equity investors.
Watch out this space for more news on Satyam Bidding. Please leave your comments on what you think will be share price for bidding and who will be the ONE.
Sunday, March 22, 2009
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