Satyam gets more suitors; Fidelity picks up 2.5 per cent

29 January 2009

As many as seven possible suitors, including private equity players, have shown interest in acquiring Satyam Computer Services even as asset management company Fidelity Investments bought a 2.5 per cent stake in the scam-hit IT firm.

Two funds managed by Fidelity bought 17.13 million shares of Satyam Computer Services for Rs91.5 crore ($18.7 million) in block deals, at a weighted average price of Rs53.4, data available with the National Stock Exchange showed.

Satyam Computer board member and CII chief mentor Tarun Das said so far four companies have evinced interest in acquiring Satyam, adding, another two or three firms also seem to be interested.

Goldman Sachs and Avendus Capital, the two investment bankers appointed by the Satyam board are talking to all interested parties to find the best match, Das added.

The board of Satyam Computer Services also mandated Boston Consulting Group (BCG) to act as its management adviser.

Fidelity owned 3.41 per cent of Satyam as of December but sold it in the wake of the scam, according to stock exchange filings. Several other funds also sold their stake in Satyam after the fraud was revealed.