Click to play videoMumbai: BK Modi’s Spice Communication joined the fray to buy out troubled IT firm Satyam Computer Services Ltd.
The exact contours are not known but according to Modi the Spice Group has enough bank balance to acquire Satyam.
However, it will have to make its interest clear both to the board and the government as Satyam at present is a government-administered company.
The probable benchmark value of Satyam is expected to be around Rs 2000 and the bids could open anywhere around Rs 260 per share.
"We have already written to Satyam board I understand that they are meeting on the February 5. We again had a meeting of the board and have written a letter. We are ready to go to various places provided that there is an open auction system and we have said it should be like an e-auction it is transparent. We have also said that whatever money we put in has to be in the company. It is not that we put the money for buying shares from the market," said Modi.
"If I take into account that Rs 2000 crore is required - the Satyam par value of shares is only $2 - Rs 2 and can't go below Rs 2 a share for sure. So it has to be anywhere between Rs 2 to Rs 60 or whatever it is. So depending on the auction price which I am not going to tell you because bidding is competitive, the number of shares will be decided," Modi added.
Modi, however, made it clear that the telecom group would be interested in buying out Satyam and that it was not looking at a piecemeal acquisition.
Modi also said the Spice had a full team in place for Satyam, in case of a takeover. He added that Spice had written a letter to the Satyam board but had not received a response yet.
Spice, Modi added, did not fear liabilities. "We are ready to take some risk on this. We are ready to go on as-and-where basis, provided there is an open auction system. There should be an electronic auction, which is now quite prevalent and is transparent."
Larsen & Toubro and Essar have already shown their interests in the fraud-hit Satyam.
(For updates you can share with your friends, follow IBNLive on Facebook, Twitter, Google+ and Pinterest)
 |
 |
 |
|
More on IBNLive Right Now
MOST SHARED
PHOTOGALLERY
