The Satyam Saga: Firms express their interest for acquisitions

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Around seven companies have shown interest in complete acquisition of Satyam Computer Services. Suitors, include global and Indian IT firms, besides private equity funds.

The most prominent offer was made by Spice Communications. B K Modi, chairman of Spice, has expressed his desire to acquire a controlling stake in the beleagured IT firm. It has made a formal expression of interest to the government. Following this announcement, the stock prices of Spice Communications shot up by more than 70% on the Indian stock markets.

Meanwhile, conflicting reports about L&T's actions have been doing the rounds for quite a while. While the engineering firm was reported to have written a letter to the government for acquisition bid, the company's CFO denied any such move and reiterated that the trebling of the stakes to 12% was a move to protect its earlier investment.

Following L&T's cue is asset management firm Fidelity Investments which has also increased its stakes in Satyam to 6.79%, making it the second largest stake holder.

Firms such as iGate Corporation, Tech Mahindra, Aegis BPO and Quatrro BPO Solutions have evinced interest in acquiring certain businesses of the firm. Private equity firms - Texas Pacific Group and General Atlantic - are also believed to be in the fray and expected to mount a bid with an Indian IT firm.

The Company Law Board (CLB) has granted the six member Satyam board immunity and special powers to enable it to steer the fraud-hit IT major out of the mess it is presently in. The immunity means that the board can function without the threat of any punitive action against it. It has also authorized the board to raise capital by loans or mortgages, if the need be.