Friday, February 20, 2009

Satyam gets nod to select buyer, raise capital base

Satyam Computer Services won crucial approvals to increase its capital base and rope in strategic investors, setting the stage for what is likely to be a keenly-contested bid war critical to ensure the company’s survival.

The Company Law Board (CLB) permitted the scandal-hit company to raise its authorized capital to Rs 280 crore from Rs 160 crore, or to 140 crore shares from 80 crore, and allowed it to induct a strategic investor through a competitive auction process. The company was also allowed to allot the new shares on a preferential basis at par or at a premium.

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