Board sets eligibility criteria to buy Satyam

New Delhi: Satyam Computer Services Ltd board has set the eligibility criteria to buy the fraud-hit IT giant.

Sources tell Network18 that Satyam board is looking at minimum net worth criteria for bidders. The board is however, undecided on IT experience as an eligibility criterion.

Investors including BK Modi of the Spice Group have shown a keen interest in buying out Satyam but Modi is reportedly looking for a 51 per cent stake.

Modi has reportedly sent a formal letter to Satyam board but there has been no word from the other bidders, sources claimed.

The other potential buyers include L&T and Tech Mahindra.

However, the Company Law Board (CLB) has given the green signal only for a 26 per cent stake sale.

Sources also say the board may rule out private equity investors.

Decision on eligibility criteria for bidders is likely to be taken by this week end.

The Satyam Board, on February 21, decided to allow a strategic investor to buy up to 31 per cent equity through a preferential allotment and an additional 20 per cent through a mandatory open offer.

The CLB, last week had permitted the besieged company to raise its authorised capital to Rs 280 crore from Rs 160 crore, and also allowed it to induct a strategic investor through a competitive auction process.