Satyam may put an open auction

Written by: Super Admin
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New Delhi, Apr 3: The board of Satyam Computers on Thursday, Apr 2 said the fraud-hit company could be put on an open auction, if the margin between the highest bidder and second higgest bidder is less than 10 per cent.

“If one or more financial bids are at least 90 per cent of the highest bid, the board will treat the highest bid as the floor price and conduct an open auction by asking the highest bidder and those bidders whose bids are at 90 per cent of the highest bid to raise their bids," the board said in a letter to the Securities and Exchange Board of India (Sebi).

In such a situation, the top bidder as also those within 90 per cent would be asked to participate in the open auction and raise their bids, the company said.

Earlier the company had ruled out an open auction. It had said the highest bidder would be selected through sealed financial bids submitted by short-listed qualified bidders, whose technical bids have been found satisfactory.

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