March 4, 2009

Scandal-plagued Satyam offered for sale

Scandal-plagued Indian corporation Satyam Computer Services has offered itself for sale, a company board member said Wednesday.

We are applying for regulatory approvals, board member Deepak Parekh, who is also chairman of the HDFC Bank, told The Hindu.

The company would invite expressions of interest in the next few days. Satyam Chairman Kiran Karnik told CNN Wednesday.

The company's former chairman, Ramalinga Raju, resigned in January after reportedly admitting that $1.04 billion reflected on the company's books in September did not exist.

Prosecutors later charged Raju with inventing 13,000 fictitious employees to steal money from the company. Allegedly, Raju made 400 land purchases under assumed names.

Raju's attorney denied the chairman stole money from the company, The New York Times reported in January.

Parekh declined to comment on details of the sales process, but sources said the process was designed to find a buyer with the ability to absorb the losses stemming from the accounting fraud, The Hindu said.