The government-nominated board of Satyam Computer Services Ltd. will announce Monday mid-afternoon the highest bidder for a stake in the company, but that it might take a couple of more days to name the final bidder, media reports said.

Kiran Karnik , Chairman, reportedly said the board would recommend the highest bidder to the Company Law Board or CLB for their approval. After the CLB's approval, the winner will be given four days to deposit the money for the strategic stake and the requisite funds for the mandatory public offer in an escrow account.

The strategic sale process will be completed in two phases. In the first phase the winning bidder will subscribe to newly issued equity shares of the company amounting to 31% of share capital, and then make a mandatory open offer for 20% at the same price. If the bidder fails to garner 51% of shares by this process, the acquirer could subscribe to additional, newly issued shares, but without necessitating a further open offer.

The acquirer is required to lock-in its shareholding in the company for there years.

The board has reserved the right to reject all the bids, if they are below an expected price. The board of Satyam is set to fix an informal floor, which is closer to the IT firm's current market price of Rs.47. At Rs.47, the firm would cost around Rs.1,740 crore for a 31% stake through subscription of fresh shares and a 20% open offer thereafter. The board has the capital market regulator's exemption not to set a minimum floor price.

The board members and former Supreme Court Judge SP Bharucha, who will supervise the whole process, will consider financial offers from all the bidders, who were qualified for the technical bids. The financial bids will be selected based on their track record, their corporate governance, mergers and acquisitions history, and their ability to manage the global operations of a company like Satyam.

The highest financial bidder's name will be announced, if there are no bidders with a price that is less than 90% of the highest bid. If there are one or more bidders who are above the 90% threshold, they will be allowed to participate in a second round, along with the highest bidder. The top bidder in the second round will be the winner. In the event of a tie, there will be a tiebreaker.

The board will resort to an open auction, if there is a less than 10% difference in the price quoted by highest bidder and others. The highest bid will become the floor price for open auction. This could ensure more money flowing into the company, besides helping the highest bidder. Potentially there could be multiple rounds of bidding till only one bidder is left.

There are four bidders left in the fray, namely, L&T, Tech Mahindra, Wilbur Ross Associates and Cognizant. The board expects that Wilbur Ross and Cognizant are likely to put in a joint bid, though there is no official confirmation on this.

Meantime, the TV reports said all the technical bids were opened and three bidders were qualified for the price bidding.

At the BSE, Satyam Shares are currently trading at Rs.54.015 up by Rs.7.00 or 14.85% on a volume of 196.16 lakh shares.

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