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Satyam board may touch L&T stake issue, finalise on CEO, funds
January 25, 2009 22:06 IST
The board of Satyam [Get Quote] will meet for two days from Monday to finalise the twin issues of appointing CEO and CFO and working capital arrangement, and may discuss L&T increasing stake in the company to 12 per cent.
A Satyam director said it is quite obvious that L&T picking up more stake in the company would be discussed as
that is the single largest stakeholder at the moment.
LIC [Get Quote], which holds four per cent stake, has found a board berth in Satyam, while L&T does not have a board seat.
Engineering giant Larsen & Toubro tripled its stake in Satyam to 12 per cent on Friday from its earlier 4 per cent.
Earlier, Satyam board member Tarun Das had said the board has been approached by potential Indian and MNC bidders. Software company iGATE has already expressed interest in the fifth largest exporter.
The six-member government board had met last week and had announced that funding arrangements for Satyam to meet operational needs, including the salary bills and vendor payments, up to March 2009 would be be announced before January 28 while the new CEO and CFO will be appointed soon.
It also said a new investment banker would be appointed in the next few days and declared that the immovable properties of the company, including all campuses owned by it, were free from any encumbrance - making them eligible for mortgaging or sale.
In a statement issued after the meeting, the board confirmed that prima facie there appeared to be no basis to doubt the number of employees and the attrition was well under control.
The collections had been robust so far and the board took into confidence the leadership team to work out the ways and means to expedite the collections and also to execute prudent measures for cost optimisation.
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