Karnik: Keeping busy

Mumbai, April 3: Satyam Computer’s board of directors today met bidders, including Larsen & Toubro and Tech Mahindra, as part of a due diligence exercise to sell up to a 51 per cent stake in the beleaguered IT major.

Chairman Kiran Karnik said the due diligence process was still on and the company was hopeful of giving a clearer picture on the bidding process in the next few days.

Apart from the board members, Satyam’s chief executive officer A.S. Murty, L&T’s chief financial officer Y.M. Deosthalee and Tech Mahindra’s president (international business) C. P. Gurnani were present at the meeting.

Sanjay Nayar, who heads the private equity player-Kohlberg Kravis Roberts, was also seen at the Taj Colaba where the meeting was held. But it could not be confirmed whether he met the Satyam management.

Bidders have been asked to complete their due diligence by April 4.

Karnik said the board would complete the bidding process within the set time frame.

“We had put out a time schedule. We will stick to that,” Karnik said.

Satyam board member Deepak Parekh said an update on the bidding process was expected tomorrow.

Engineering major L&T, which holds a 12.04 per cent stake in Satyam, is being considered the front-runner in the deal, while the Mahindra Group’s IT arm, Tech Mahindra, and private equity firm WL Ross are also understood to be in the race.

Satyam had earlier said a buyer would be announced by April 30.

On Thursday, Satyam made some modifications in the bidding process to find a new promoter.

The Hyderabad-based company said if there were one or more financial bids which made up at least 90 per cent of the highest bid, this would be treated as a floor price and an open auction would be conducted subsequently.

Satyam had earlier said that if one or more financial bids in the first round are at least 90 per cent of the highest bid, an additional round of sealed financial bids would be invited on the same day from the highest bidder and those whose bids are 90 per cent of that bid.