Satyam boards appoints investment advisors

The government-appointed board of fraud-hit Satyam Computer Services on Tuesday announced the names of Goldman Sachs and Avendus as investment bankers. They will explore various options for the company, which include identifying strategic investors and obtaining expressions of interest from them in a fair and transparent manner.

The board also appointed management consultancy Boston Consulting Group to support the directors and the Satyam leadership team. BCG will appoint a three-member team for the assignment and will not charge anything for its services.

Meanwhile, Price Waterhouse said it has suspended S Gopalakrishnan and Srinivas Talluri, who had audited Satyam’s accounts, following allegations of collusion in the fraud. Price Waterhouse’s assurance leader, Thomas Mathew, too stepped down, though he will remain a partner in the firm.

Besides, the bail petition of Satyam founder Ramalinga Raju and former CFO Srinivas Vadlamani will come up for hearing on January 28.

TN Manoharan, who chaired the Satyam board meeting on Tuesday, said the board has received several buyout proposals from companies as well as some private equity firms. He indicated that there might be an open bidding for the company in order to ensure transparency.

This apart, a business television report said that the board has urged the Securities & Exchange Board of India (SEBI) to waive the rule that requires anybody who acquires 15% in a company to follow it with an open offer for 20% more shares.