IBM, Fidelity among Satyam contenders
The news of IBM, and Fidelity expressed their interest
for the tainted Indian IT giant Satyam shows the company’s viability at this stage. Each company has its own reasons for taking over Satyam, but the bidding among many good
contenders is always better than just two/three corporate houses.
IBM stands highest in the field of IT compare to any one in this field. It is big, efficient, systematic, resourceful, and with good management. It has registered itself by submitting EoI through its law firm that represented the company. With the addition of IBM the number of potential contenders has reached at least eight for bidding of Satyam.
Besides, there are about 130 firms, which have submitted the Expression of Interest. All these firms may not be eligible to join the bidding process because of preconditions set by the board of Satyam that states the PE firms need to be in partnership with strategic investors for bidding. Though the rumour that only IT companies will be allowed to take over Satyam, is denied, yet it is presumed that PE firms won’t be serious bidders.
The interesting part of Fidelity is that it too holds 10% shares of Satyam making it the second largest share holder, next to L & T.
Experts feel that L & T, IBM, Tech Mahindra, Spice Group, and may be Fidelity will be real interested bidders in the end. IBM’s interest in Satyam first was seen, when it evaluated the company for the purpose of buying it, but the company denies the news. It was thought earlier that L & T is the strongest player in the game, now it has got a better rival to compete with. The competition would be more interesting if the news of Hewlett & Packerd submitted the EoI becomes true.
The board will send the request for proposal to all firm registered with EoI. They will be asked to submit the detail EoI along with proof of US $ 290 million cash available for bidding. The date set for this is 20th March, 2009.
Former Chief Justice of India S. P. Bharucha has been given the responsibility of administering the process of selecting strategic investor for Satyam.