Has Spice Corp pulled out of Satyam bid?

Noida based BK Modi promoted Spice Corp has pulled out of the bid process for Satyam 'at least for the moment'. The company cites non-transparency as the reason for pulling out. "We are pulling out of the Satyam bid at least for the moment.

We have sent a letter to the Satyam board and former Chief Justice SP Bharucha, who is supervising the bid process. The bid process should have been in line with the order of the Company Law Board," said a company top executive overlooking the bid.

The company was reportedly unhappy over Satyam board not disclosing the names of other shortlisted bidders and making the auction 'open'. It was also not happy with the fact that the second round includes another ‘closed’ technical evaluation' post the one which has already happened post EoI submission.

"As it is only a few bidders are left, what constrains the company from not making the auction process public for the benefit of all shareholders?," the executive added. The company spokesperson however added that Spice might relook at their decision if Satyam makes the bid process 'open and transparent' as advised by CLB.

April 9 is the last date for submission of financial bids for shortlisted players. Spice, L&T and Tech Mahindra are amongst a few bidders shortlisted to participate in the second round.

Economictimes