Spice eyeing majority stake in Satyam

The head of Spice Group said he was interested in bidding for majority control of Satyam Comp.

Written by Reuters | Mumbai | Published:February 20, 2009 1:44 pm

The head of Spice Group,a contender for Satyam Computer Services,said on Friday he was interested in bidding for majority control of the troubled outsourcer,but would reconsider if a smaller stake was offered.

“We have a game plan. But we can only implement this game plan if we have a 51 per cent stake. If we don’t have 51 per cent,how will we implement it?,” Chairman B.K. Modi told a television channel.

Modi also said he would prefer putting his money directly into the fraud-hit outsourcing firm rather than taking a minority stake and making an open offer to existing shareholders to increase the holding.

“The board should ask for a waiver (of the open offer). I think money should come in the company. Shareholders will benefit because as stabilisation comes in the company,they will see their value coming back,” Modi said.

Late on Thursday,Satyam won an approval to bring on board a strategic investor with the financial and management clout needed to ensure its survival.

The Company Law Board (CLB) said Satyam could raise its authorised shares on issue to 1.4 billion from 800 million,and a board member said criteria for a stake sale could be finalised next week.

Satyam has been struggling for survival since Jan. 7,when founder and chairman Ramalinga Raju quit and said profits had been overstated for years and assets falsified.

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