Satyam, up for sale! :- As of last week 11 bidders had entered the fray and a lot of the visitors here have been looking forward to some inside track on the deal. However, Silence is golden. As of now, KKR does not have a confirmed IT specialist bidding with them, IGate have withdrawn as they never had the cash, and another 2-3 (dare i say, IBM) are still looking to price pennies for this add on to their portfolio. However, it is too early to say where the bids will open. If you do go back to my earlier recommendation post Rajuisms hitting global media, The billable staff ( only 50-60% remaiin on rolls ) and the real estate itself should itself be worth $150 million which is more like Rs 35 per share and of couse no one is going to pay a penny of their debt ( not in this market so the equity bid will correspondingly climb down from there. But the bidder even if he does not factor a penny of the liabilities has to pay a minimum of 35-40 per share. That’s what I think. Some of the other suitors like IBM are also going to drop by the way side because of their propensity to look for bargains which as a cycle everyone over does during bear times ( just like they overpay in the boom!) leaving L&T and probably another 2-3 as serious bidders. No one from the IT industry / Outsourcing sector is likely to be interested in Satyam, because it would more or less be seen as a confession of knowledge of glaring lapses in Corporate Governance ( how would you make that silly connection? well, Satyam was around a good 20 years before and nothing has apparently changed in these 20 years). Well, if GE is interested then they do have the wherewithal to carry out the threat and buy Satyam, It would also give them a lot of real estate in their India China story ( which somehow, is all they get!)

Enjoy the weekend!

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