Satyam sale "not above board"

BK MODI, whose Spice Group withdrew from the race to buy blighted outsourcer Satyam Computer Services has cried "foul" over Tech Mahindra's acquisition of the company.

Modi told the Economic Times of India that the selling process was not transparent and alleged that various guidelines set by the company board and India's Company Law Board (CLB) were not followed.

He is penning a letter to Justice SP Bharucha, who oversaw the sale process, and the to CLB objecting to the sale.

Modi was already miffed that one of the bidders shared a board member with Satyam. And he thinks that Tech Mahindra's decision to borrow money for the buyout was against the bid guidelines.

He said that bidders were told that the deal was meant to done in cash and that bidders were required to show a large bank balance to the negotiatior. Tech Mahindra bought the company by taking a loan and Modi claims Satyam may have been sold off cheap.

According to the Electronic Times, Modi originally wanted an e-auction and Satyam's accounts to be made public.

It is starting to look like Satyam will continue to court controversy long after its board has been sentenced and the outfit flogged. µ

L'INQ
Economic Times