Processing .....please wait.. 
The article has been forwarded.... 
Satyam buyer must be able to inject over 
1, 000 Cr
By siliconindia
|
Monday, 23 February 2009, 23:53 IST |
1 Comments
Hyderabad: As revitalization of the troubled Satyam computers is becoming the only concern before the new board of the company, they are putting forward new criteria for prospective buyers who seek to acquire the company. According to a person close to the development, a strategic investor for the company should be able to infuse at least 
1, 000-1,500 crore into the company, reported The Economic Times.
The ability to infuse cash will be taken as key criteria to be considered for the acquisition of Satyam as per the bidding norms. The net worth of the bidder will also be a qualifying criterion. The board will set a floor and firms with net worth below this limit will be disqualified.
The board's norms indicate that prospective bidders will have to show a firm commitment in terms of loan sanctions from banks or arrangements with private equity or any other credible source of funding. In Satyam's case, demonstrating access to funds would be a prerequisite unlike most other mergers and acquisitions where loan negotiations take place simultaneously during the acquisition process. Moreover, bidders should also possess managerial expertise to run an IT firm.
The auction for the company will be conducted face-to-face under the supervision of a retired Supreme Court judge or a former Chief Justice of India.
As per the board's norm, a strategic investor can have management control by possessing 51 percent stake in the firm. It has decided to allow the strategic investor to buy up to 31 percent equity through a preferential allotment if he so chooses and an additional 20 percent through a mandatory open offer.
1, 000-1,500 crore into the company, reported The Economic Times.
The ability to infuse cash will be taken as key criteria to be considered for the acquisition of Satyam as per the bidding norms. The net worth of the bidder will also be a qualifying criterion. The board will set a floor and firms with net worth below this limit will be disqualified.
The board's norms indicate that prospective bidders will have to show a firm commitment in terms of loan sanctions from banks or arrangements with private equity or any other credible source of funding. In Satyam's case, demonstrating access to funds would be a prerequisite unlike most other mergers and acquisitions where loan negotiations take place simultaneously during the acquisition process. Moreover, bidders should also possess managerial expertise to run an IT firm.
The auction for the company will be conducted face-to-face under the supervision of a retired Supreme Court judge or a former Chief Justice of India.
As per the board's norm, a strategic investor can have management control by possessing 51 percent stake in the firm. It has decided to allow the strategic investor to buy up to 31 percent equity through a preferential allotment if he so chooses and an additional 20 percent through a mandatory open offer.