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Spice seeks to take over Satyam
By siliconindia
|
Saturday, 07 February 2009, 22:27 IST |
4 Comments
New Delhi: Throwing its hat into the ring, Spice group has expressed its interest to take over the troubled Satyam Computers. Earlier the group had sold its mobile communication arm Spice Communication to Idea Cellular for 
2, 100 crore. The latest bid on Satyam has attracted most of the investors and shareholders, reported The Economic Times.
BK Modi, Chairman, Spice said that he has set three conditions before Satyam board to take over the company. Modi wants the auction should be via electronic means (e-auction) to make the process quicker, open and transparent to everyone and it should be standardized with a minimum bid of Rs 1,000 crore.
Moreover, Spice is looking for the management control of Satyam with at least 51 percent stake. "Our management is ready and capable enough to take over the reigns of Satyam in their hands. The acquisition bid is part of our global acquisition strategy to foray into the digital wireless and information technology space," mentioned Modi.
Spice is also demanding that they should be allowed to invest money where it is needed most rather than benefiting a few shareholders, by open offer. On the possible amount of the deal, Modi said,"About Rs 2,000 crore. At least that is what I have been told is the minimum amount the company needs to resurrect itself. We have enough cash lying in the banks."
At the same time Spice wouldn't like to go with an open offer. "Many large institutional players are making millions on Satyam stock in the secondary share market. If we go the other way, then due diligence alone may take many months. Satyam has already lost many employees and we don't want any more loss to happen to the company," opined Modi.
2, 100 crore. The latest bid on Satyam has attracted most of the investors and shareholders, reported The Economic Times.
BK Modi, Chairman, Spice said that he has set three conditions before Satyam board to take over the company. Modi wants the auction should be via electronic means (e-auction) to make the process quicker, open and transparent to everyone and it should be standardized with a minimum bid of Rs 1,000 crore.
Moreover, Spice is looking for the management control of Satyam with at least 51 percent stake. "Our management is ready and capable enough to take over the reigns of Satyam in their hands. The acquisition bid is part of our global acquisition strategy to foray into the digital wireless and information technology space," mentioned Modi.
Spice is also demanding that they should be allowed to invest money where it is needed most rather than benefiting a few shareholders, by open offer. On the possible amount of the deal, Modi said,"About Rs 2,000 crore. At least that is what I have been told is the minimum amount the company needs to resurrect itself. We have enough cash lying in the banks."
At the same time Spice wouldn't like to go with an open offer. "Many large institutional players are making millions on Satyam stock in the secondary share market. If we go the other way, then due diligence alone may take many months. Satyam has already lost many employees and we don't want any more loss to happen to the company," opined Modi.