The government-appointed board of Satyam Computer plans to invite bids for a strategic investor this week and hopes to complete the selection process within a month, a top source said.
The board is likely to meet in Hyderabad on Friday.
A host of players, including engineering major Larsen & Toubro, the B.K. Modi-led Spice group and the Hindujas, have evinced interest in acquiring Satyam.
L&T, which has more than a 12 per cent stake in Satyam, is understood to have appointed investment bankers Citi and Nomura to advise it on a possible deal with the firm.
The Hyderabad-based IT major had recently received approval from market regulator SEBI to conduct a global competitive bidding to sell a 51 per cent stake to a strategic investor. The investor can acquire up to 31 per cent of Satyam’s share capital through preferential allotment and the remaining 20 per cent through an open offer.
The Satyam board, which is believed to have finalised the modalities in terms of the bidding price, is in consultation with its two investment bankers — Goldman Sachs and Avendus — to quicken the process.
Though the board prefers an Indian player as a strategic partner, the final decision will be taken after evaluating all factors, including the capability of the investor to mobilise working capital for the crisis-ridden company.
“The acquirer may not enjoy the assistance of this board as it may not continue for long after the buyout,” the source said, adding that the investors would have to factor this in while taking their call.
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