SOA News Desk
IBM a Question Mark in Satyam Auction
The press is divided on whether IBM Global Services is involved
Mar. 26, 2009 10:00 PM
Satyam, the fraud-reeling Indian outsourcer whose CEO padded the books to the tune of a billion dollars, told local regulators Tuesday that it's planning to decide which bidder will buy a 51% interest in the company by April 30.
It's unclear who might bid or who all is even contending or how much might be offered after Satyam makes due diligence disclosures to a shortlist of candidates.
A new set of auditors is still working on restating years' worth of its books.
The press is divided on whether IBM Global Services is involved.
The Economic Times of India says it's on a shortlist of eight companies that will get the due diligence material and is working through a law firm.
Reuters says IBM won't bid, but that of course doesn't mean it's not looking things over.
IBM is reportedly moving as many as 5,000 Global Services jobs from the US to India.
If IBM not in then Larsen & Toubro, a local engineering firm that already owns 12% of the joint, is thought to be the frontrunner. There are reportedly two private equity firm including Apax Partners on the shortlist.
The buyer won't be able to sell any material assets for two years without the approval of the other shareholders, can't sell any shares for three years, can't leave the market and has to retain a hundred key people for a year.