Slight change in Satyam bidding rules - open auction to replace sealed bidding
The Satyam Computer Services auction for the acquisition of 51 percent stake in the company have been changed slightly, to meet the demands of some of the contenders - the sealed bidding has been replaced with an open auction! The alterations in the bidding rules come as a move to ensure greater transparency of the auction proceedings.
According to the government-appointed Satyam board, the decision to go in for an open auction largely depends on the condition of a 10 percent difference in the price quoted by the highest bidder vis-a-vis the others. The highest bid would become the base price for the open auction; and the highest bidder at the open auction will be declared as successful.
The new bidding rules for the Satyam auction will become applicable only if at least one of the financial bids is 90% of the highest bid. In case that does not happen, the highest bidder will automatically take over as the new owner of the company.
As per official information from Satyam, the deadline for submitting financial bids has been set as April 9, once the bidders have qualified on technical grounds. In its letter to the US SEC and Sebi, Satyam said that the financial bids will be opened by Justice SP Bharucha, ex-Chief Justice of the Supreme Court.
