March 9, 2009

Bidding for Satyam begins

Scandal-plagued Satyam Computer Services in India has put a majority of its shares on the market, the company said.

The company was rocked by an accounting scandal in January, when then-Chairman Ramalinga Raju resigned after admitting he added $1.04 billion to the company's books to make the company appear stronger.

The board expects to select a winning bid in six weeks. The bidding ends March 20, CNN reported Monday.

Those offering bids must prove they have at least $290 million available to spend. The winning bidder must then acquire equity shares amounting to 31 percent of the company. The next 20 percent, by Indian law, must be purchased with an open public offer, CNN said.

Satyam, India's fourth-largest software-service firm, employs 53,000 workers in 65 countries, CNN said.