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Satyam board to discuss 6-7 proposals for buyout, funding

February 03, 2009 16:51 IST

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The two-day Satyam [Get Quote] board meeting beginning Wednesday will consider six-seven proposals for buyout of the beleaguered IT major and discuss the Rs 600-700- crore (Rs 6-7 billion) short-term funding requirements to be provided by three public sector banks.

"We have received 6-7 EoIs from potential buyers that will be examined in Wednesday's board meeting. The priorities of the board, while considering these proposals, will be to guard the larger interests of Satyam, besides getting a good pricing," a top source told PTI on Wednesday.

The source, however, did not reveal the names of the companies, which have submitted EoIs, but it could be engineering major Larsen & Toubro, Mahindra Group, Hindujas, Spice and i-Gate, among others.

Meanwhile, three PSBs have given in-principle nod to Satyam to provide short-term loans for meeting salary, working capital, payment of arrears to vendors, provident fund dues, TDS and rentals charges.

"Satyam has reached an in-principle agreement with three leading state-owned banks to get short-term loans. The company can mortgage its land bank to avail this funding," he said.

Though Satyam has received proposals from both domestic and foreign players, the board may give preference to a local entity. Satyam's land bank is worth Rs 1,500-1,700-crore (Rs 15-17 billion) and hence it would not be difficult to secure Rs 600-700 crore loan pledging this property, the source said.

The IT-giant already has a long-standing relationship with the global banking major, Citibank.

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