Satyam seeks CLB nod

Fraud-hit Satyam Computer Services Ltd has sought the approval of the Company Law Board (CLB) to conduct a public auction for induction of a strategic investor in the company.

The company has written to the CLB and has sought the approval for the same. The petition has been admitted by CLB and the hearing on the issue will continue tomorrow.

In its petition, Satyam has asked CLB to permit it "to devise a plan which provides for transparent, open and competitive process for continued operation" of the company in the interest of its all shareholders.

The company would also consider making "preferential allotment of equity shares or other securities for financing" its operating and capital costs and other financial needs without holding any Annual General Meeting, the petition said.

Satyam submitted that once the plan was approved and functional, the funds received by it would be kept in a 'no-lien account' wih the IDIBI Bank and Bank of Baroda, which recently gave the company Rs 600-crore loan towards working capital needs, and would be used for revival of the company. The company has also sought approval for raising its authorised share capital to 120 crore equity shares without holding any AGM.

At the end of last fiscal ended March 31, 2008, the company's authorised equity capital stood at 80 crore shares.

Satyam has also asked CLB to permit it to "conduct a transparent, open and competitive price bid auction" following relaxation of strict provisions of takeover norms by SEBI and to receive requests for pre-qualification of bidders for participation in the company as strategic investors.

The Satyam board, which was formed as per the CLB orders, would have full discretion to accept or reject such requests and furnish the pre-qualified bidders with the confidential information about the company on payment of a refundable fee of Rs 5 crore.

Source: http://www.tribuneindia.com/2009/