Satyam buyer will have to make 20% open offer

SEBI earlier amended the Takeover Code that allows companies,whose boards have been superseded by the government,to seek exemption from applicability of provisions of takeover regulations,such as mandatory open offer and 26-week average price.

The open offer allows existing shareholders to exit the company by selling equity to the acquirer at a pre-determined price.

On the issue of management control given only in case of the bidder acquiring 51 per cent,Gupta delinked both the issues saying,”How many companies in India are managed by our corporate sector with 51 per cent shareholding?”

Asked,if the reserve price will be linked to the networth of the company,he said,”Let the board of Satyam first make up its mind. They have international consultants.

They are the best experts to suggest.”