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Satyam Board On Tech

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Indian mid-sized outsourcer Tech Mahindra was the highest bidder for a controlling stake in Satyam Computer Services Ltd., the government-appointed board of the fraud-hit company said on Monday.

Subsequent to approval by the Company Law Board and payment of required funds, Tech Mahindra will buy a 31 percent stake via a preferential allotment of new shares, and then make an open offer for a further 20 percent of shares.

Following are comments by chairman Kiran Karnik and board member Deepak Parekh at a media conference on Monday.

On The Price: (Karnik)

"We are very happy because there is an active market. The market takes into account all factors objectively and wisdom of the markets that steps.

"It is a very valuable company, and the fact that a company like Tech Mahindra has made its bid is a very positive one, and we view this as a very successful event."

On Tech Mahindra's Bid: (Parekh)

"Tech Mahindra was always interested in expanding its operations and this was a good opportunity for Tech Mahindra, but because of my involvement with Mahindra & Mahindra I stayed out of the technical analysis, which my other colleagues on the board took care of."

Restatement Of Accounts:(Parekh)

"The two accounting firms are still at it. We are trying to restate the accounts for the past five to six years, starting from 2008/09. The work is still in progress, it will take a few months more."

"So we cannot say anything on the accounting side, but subsequently when the entire process is over, the confidential information that we had in the data room and was made available to the three, four bidders could be made public to the other shareholders, but that is entirely the call of the winning bidder."

On The Process: (Karnik)

"The final steps are now just about being taken and I am very happy that at this stage you are seeing Satyam, in some stage, some sense, being reborn, with a new investor, a new owner.

Customers: (Karnik)

"There has been of course the customers, a few of whom chose to leave, but a vast majority of whom have stayed on... been our partners, who have shown faith in Satyam, who have continued to show faith in us."

On Acquiring Management Control: (Karnik)

"They (Tech Mahindra) don't have to wait for the public offer. They will get management control immediately after this part of the process, which is 31 percent, is over".

"Money has to be deposited. It has to be in the escrow. The approval of the Company Law Board has to come and then they can take over management control."


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