Satyam Computer ruled out selling portions of the company's business, even as it appointed a management adviser and two investment bankers to show the way forward.
Satyam Computer on Tuesday ruled out selling portions of the company's business, even as it appointed a management adviser and two investment bankers to show the way forward for the beleaguered IT company.
"A sale of parts of Satyam at this stage would be contrary to the mandate of regulating the affairs of Satyam as a going concern as stipulated by the Government. It is therefore not an option evaluated by the company," said T N Manoharan, who chaired Satyam's board meeting on Tuesday.
Many IT and ITeS firms had evinced interest in picking up portions of Satyam's business, including its BPO arm, while engineering major L&T had increased its stake in Satyam to 12 per cent through open market transactions.
Referring to L&T's move, Manoharan said: "The reasons for the same are best explained by the purchaser. It should not be taken as an indication of support by the government-nominated board for change of control of Satyam at this stage."
The company said it has appointed Boston Consulting Group as management adviser to support the directors and leadership team. A three-member dedicated team from BCG would work closely in the revival of the company.
The company also appointed Goldman Sachs and Avendus as investment bankers, which will advise on the way forward and explore various strategic options that will include identifying strategic investors, obtaining Expressions of Interest.
The board also concluded most of the discussions relating to financial requirement to tide over immediate requirements, Satyam board member Deepak Parekh said on Tuesday.
The company said salaries for January 2009 were as per schedule from its internal accruals and receivables and that validations are currently being done on employee numbers, although there are sufficient data pointing to the earlier reported numbers being valid.
A formal statement on the proposed management structure is likely next week.
Manoharan confirmed that the company has received several proposals from corporate entities as well as select Private Equity firms.
He added that appropriate, fair and transparent measures for enabling open bids will be devised by the company's board in consultation with SEBI and the government, given the "adequate number of bidding interests" that has been evinced.
On customers, member Kiran Karnik said: "I have been talking to a quite a few customers and partners, every day. It is heartening to note that they continue to engage with us, confidently... a few are discussing risk mitigation plans...all these actions reflect the sense of urgency and determination..."
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