Satyam Computer Services will receive financial bids by next week and the sale of the fraud-hit IT service company is likely to be completed by the middle of this month, sources close to the developments said.
The government-appointed board of Satyam had last month said it hoped to finalise a buyer by 30 April. The sale is now likely to be realised much earlier, possibly before the elections start, sources said
Satyam has, meanwhile, filed copies of a SEBI letter along with a press release with the Bombay Stock Exchange and the National Stock Exchange. Satyam said these are also being filed with the US Securities and Exchange Commission (SEC), and are available to the public over the internet at the SEC's website.
Satyam Computer Services had earlier submitted a letter to the Securities and Exchange Board of India (SEBI) relating to a slight modification in the bidding process to be followed by the company to select an investor.
The Company Law Board (CLB) principal bench in New Delhi had authorised the board of Satyam Computer Services to select an investor, subject to certain conditions.
This press release, however, said it is not an offer of securities for sale in the United States.
''Securities may not be offered or sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the company and that will contain detailed information about the company and its management, as well as financial statements,'' it said, adding, ''The company does not intend to register any securities in the United States or to conduct a public offering of securities in the United States.''
Reports also said the Satyam board was expected to meet in Mumbai to finalise the sale plan.
Satyam, with a 50,000-strong staff and over 600 clients saw its market value plunge from $7 billion in May 2008 to just about $530 million after its founder and chairman Ramalinga Raju quit after owning up fraud, involving falsification of assets and overstating profits for years.
Engineering and construction major Larsen & Toubro, IT company Tech Mahindra and US buyout firm WL Ross & Co are reported to be in the race for Satyam Computer.
Satyam Computer Services, with a total strength of around 47,500, after the attrition post the revelations, saw a steady outgo of employees. According to reports, about 3,000-3,500 have left the company in the last few months.