Sale delay may cost Satyam to liquidate: Modi

Spice Corp Chairman BK Modi has said that a delay by the Satyam board in completing the sale process may cost the company dearly. Speaking to ET from US, he said that the stake sale process may get delayed if the board goes for an open offer of 20%. “We are in touch with many clients in Malaysia and here (in US). Many are waiting till March end. If things don’t materialise by then, the clients might shift to other companies. Already there are other IT companies waiting to prowl on Satyam's clients. Since CLB has already given a go ahead for issuance of 51% new shares, issuing only 31% new shares may delay the process by another 2-3 months. It has already lost some clients and a further delay may cost it more, even to the point of liquidation,” Spice Corp Chairman BK Modi said. On the other hand, Satyam board which met last week did not issue a statement regarding requirements for potential bidders. An announcement regarding the minimum reserve price and bid process is expected this week. Apart from Spice Corp, L&T, Hinduja Group and Tech Mahindra are considered to be in the fray for buying a stake in Satyam. However, Spice Group says that putting a minimum reserve price may not be ideal.