L&T, Spice, Mahindra submit formal EoIs to buy Satyam

Larsen & Toubro, Spice Corp and Tech on Friday submitted expressions of interest (EoIs) to acquire control of scam-hit Satyam Computers. However, iGate opted out possibly for want of more financial information.
As the deadline for submitting formal proposals ended this evening, the suitors sent in detailed EoIs and proof that they have cash of Rs 1,500 crore. At Friday's price of Rs 43.90 a share, Satyam is valued at Rs 2,954 crore.
The board of Satyam Computer Services met in Hyderabad to evaluate the EoIs for acquiring a majority stake in the outsourcer. After this, Satyam would provide shortlisted bidders access to business, financial and legal information.
iGate, a US-based company, today said: "Based on further analysis, it has decided not to participate in the bidding." It did not give any specific reason for its decision but its CEO Phaneesh Murthy had earlier said that he would opt out if he does not get fresh financial data. Satyam's accounts are in the process of being restated by KPMG and Deloitte following founder Ramalinga Raju's admission of cooking books. The Satyam board is expected to finish the shortlisting before March 25. The company had said qualified bidders will be shortlisted and given access to certain business, financial and legal materials, and after completing the due diligence process, they would need to submit their financial bids. Based on an evaluation of the bids, the company will select the successful bidder. The two-phase exercise to induct a strategic partner involves a 31 per cent stake sale by issuing fresh equity and then a 20 per cent open offer by the successful bidder.
New York Stock Exchange-listed Satyam has been struggling ever since Raju shocked investors in January, saying profits had been overstated for years and assets falsified in what has become India's biggest corporate scandal at nearly Rs 7,800 crore. Raju is now in jail awaiting trial.