The Hindu Business Line : Spice prefers pref issue route to acquire Satyam

New Delhi, Jan. 30 Spice Group - the latest suitor in the fray for Satyam Computer Services - on Friday said it is keen on acquiring controlling stake in the troubled software company through preferential issue of shares (by Satyam) and not via the open market route.

The Spice Group Chairman, Dr B.K. Modi, told Business Line that his group has nearly Rs 2,000 crore of cash in the bank and is willing to infuse the entire amount if need be, but via the preferential issue route. This would ensure that the money goes directly into the troubled Hyderabad-based software firm, he said.

“I want the money to go into Satyam. I do not believe in buying shares from the market,” Dr Modi said. Last week, Larsen and Toubro hiked its stake in Satyam to 12 per cent from four per cent - L&T bought over five crore shares of the IT services company worth Rs 176.42 crore in separate bulk deals on the NSE and BSE.

Commenting on his interest in Satyam, Dr Modi said, “I believe that Satyam needs nearly Rs 2,000 crore as a bail-out package. We have that amount in the bank…” Last year Spice Group - whose operations span BPO, mobile software development, handset manufacturing, and entertainment – had sold its mobile services business to Idea Cellular.

“The deal was done at Rs 2,700 crore…But even besides the cash in bank, every company in our group has money… Today, I do not hold any shares of Satyam. If we buy shares of Satyam from the market, the amount cannot be utilised by Satyam itself. In my view those who have some holding in Satyam should not be allowed to buy or sell the shares for the time being,” Dr Modi said adding that a detailed presentation outlining Spice’s strategy for Satyam had already been sent to the latter’s board.

Meanwhile, Satyam board member Mr Kiran Karnik, said that the company has already paid salaries to its Australian employees. “Salaries have been credited... I spoke to somebody in the Australia team and they confirmed it,” Mr Karnik said, adding that the next board meeting is likely on February 5. He also confirmed that Bombardier, a client of Satyam, has sent a “positive statement” on its existing relationship with the IT company.

Related Stories:
Spice Group keen to acquire 51% in Satyam: B.K. Modi
L&T sees significant value in Satyam
L&T raises stake in Satyam to 12% in 2 bulk deals

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Tata Capital to raise Rs 500 cr via non-convertible debentures

Cell phone makers propose free handsets to 50 m poor families

Fresh cut flower exports beginning to wither

HC allows Reliance to sell KG basin gas at $4.20

KG trial production by Feb-end

Mundra Port Q3 profit surges 92%

Tata Motors posts Rs 263-cr loss

Oil bonds help IOC report 41% rise in net

Spice prefers pref issue route to acquire Satyam

Moody’s lowers credit outlook for banking system

‘France willing to reprocess uranium for India’

Markets this week

NCDEX moves HC against FMC