Troubled Satyam ‘inviting takeover bids'

INDIA-- Troubled IT, research and analytics outsourcing firm Satyam is inviting “formal bids from potential suitors”, despite not being able to restate its accounts for “months”, according to a report in the Financial Times.

Kiran Karnik, chairman of Satyam's government-nominated board, told the FT: “While the accounts restatement in a formal sense and the audit is going to take a long time, the clarity with regard to the real situation [of the company's business] is fairly clear.”

The firm was rocked by a $1bn accounting fraud in January which led to the departure of former chairman B. Ramalinga Raju and triggered several lawsuits in the US.

However, Satyam installed a new CEO earlier last month and managed to secure $130m in financing.

The company bought construction equipment manufacturer Caterpillar's market research division for $60m last year.

Author: James Verrinder