Satyam accounts not to be shown before bidding: Karnik
The insecurity veiled over the corporate industries will only
start fading when the new acquirer will bring Satyam on the normal driving line after acquiring the same. India’s 4th largest IT company Satyam is tainted by the biggest financial fraud committed by its past chairman and promoter Ramalinga Raju.
Soon after the government’s intervention, activities to reinstate the company to its past glory have started, and investors are hoping with impatience at the renewed prospect of this company. The new board appointed by the government is trust worthy that is the biggest optimism of the investors at the moment. Every word coming out of the mouth of chairman or any of its directors is analyzed with deep interest. In this scenario,
Kiran Karnik’s utterances on acquisition of Satyam is more than crucial to everybody connected to Satyam in any way.
Karnik has said in certain terms that the account books comprising the third quarter results of Satyam will not be shown to any bidder willing to acquire this company. He has cited the reason that the account books will not be ready before the time of bidding, considering the huge manipulations made in the last few years. Karnik emphasized the fact that Satyam is known in this field for so many years and its innate value in terms of different parameters too is not new to the investors.
Goldman sachs and Avendus, the two investment bankers of Satyam is now busy putting into order the norms for the bidders keeping in mind vital points like financial capabilities, expertise in IT field that may be relaxed, audited revenue for last few years, its net worth, and any other line of reasoning, which may be useful to avoid any such future instance as happened to Satyam. The two investment bankers are dead against of allotment of Satyam’s shares on preferential basis to the new owner of the company, not even in the form of debentures that will be converted into equity shares in later date.
The enthusiasm already shown by some renowned companies have made the matter easy for the new board, investment bankers, and SEBI to march ahead for a fruitful result.
Names like L & T, Spice Corp, Tech Mahindra, iGate, and Hindujas are worth mentionable among many in the line up to acquire the ill fated company.
Once the transparent, and open bidding is over, the ball will attain more speed, any doubt?