Bid for Satyam?

Satyam Computer Systems is one of the hot talk topics of this day. Indian and foreign firms bid to take on Satyam..The outsourcing company said it had received an adequate response but did not name or number the bidders.Two investment banking sources told Reuters some eight potential suitors had registered to bid for a 51 percent stake.

There have been at least 5-8 bids. We expect a much, much smaller number to proceed to the next stage of putting in a financial bid.Indian engineering firm Larsen & Toubro, IT services firm Tech Mahindra, diversified Spice Group and U.S. outsourcer iGate Corp all said they had registered as potential bidders.Bidders must submit a detailed expression of interest and have available at least 15 billion rupees.

Satyam Chairman Kiran Karnik told Reuters the registration process did not require companies to meet any conditions.The names could include PE firms or law firms which are representing somebody else. At this stage we have not asked them to divulge who their partner is or who they are. So at this stage, frankly you have no idea.

Satyam looks an attractive takeover target given the massive plunge in its share price and a long list of marquee clients, including General Electric and Qantas Airways.But bidders face a tough job in valuing the company due to uncertainty about its accounts and liabilities.Analysts said it was unlikely suitors would bis aggressively as the company's accounts had yet to be restated and there was no clarity about legal liabilities arising from class action lawsuits filed in the United States.