Spice Corporation has initiated a mammoth offer of $408 million for Satyam Computers, the scandal-hit Indian software giant. The move has brought Spice Corp. in the race with Larsen & Toubro Limited.
The race for the stake controlling the Satyam Computers is getting hotter by each day. Soon after Larsen & Toubro, it is now the chance for the Spice Corporation. The company has reportedly initiated the move with a mammoth offer of $408 billion. Satyam Computers recently experienced a huge setback in the administration as some of its' highly placed officials left the company after getting involved in a huge monetary scandal. Reports suggested that Mr. B. K. Modi, the chairman of the company, made the announcement of the offering of $408 million for controlling stake in Satyam.
There were further reports that showed that Mr. Modi held New Delhi based Spice Innovation. The company reportedly made an initial cash offer for preference shares in Hyderabad-based Satyam. Before this Satyam hired Goldman Sachs Group Inc. for finding a buyer this week soon after Larsen & Toubro, reportedly country's biggest engineering company, tripled its stake, as stated by reports. Various reports from other agencies showed that there were other bidders, as well, that remained interested in Satyam.
The share-prices for the Satyam has drastically declined to a 70 percent level since its disaster when founder Ramalinga Raju reportedly stated that company assets are inflated by no less than $1 billion. Though soon after he did quit the company as chairman, Satyam remains in a troublesome period. While contacted by various news agencies the analysts stated that anybody and everybody would have some or the other plan for Satyam since that was in big-time trouble. The analysts further clarified that the Satyam remained available at dirt-cheap valuations, as well.
The analysts stated that the importance lies in the fact that the stakeholder company must offer right leadership as well as show a genuine interest.