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Satyam opens bidding for new investor

Services company opens bidding process to find new majority shareholder

Bidding has officially opened for the sell off of a majority share in Indian services company Satyam.

The company, at the centre of India’s largest corporate scandal after chairman Ramalinga Raju admitted to a one billion dollar shortfall in January, is looking for an investor to restore confidence and stability.

Interested companies have until Thursday to register initial interest, with detailed approaches due to close on 20th March. Would-be investors also have to prove they have the Rs 1,500 crores ($290 million) to buy a 31% subscription of new shares, with the remaining 20% plus purchased from the markets.

A number of companies have been linked to a possible buy up of Satyam, including engineering company Larsen & Toubro, Tech Mahindra, The Hinduja Group, Spice Corp and even IBM.

The bidding process will be overseen by a former Chief Justice of India or a former Supreme Court judge appointed by Satyam, the company said in a statement.