Posted on January 30, 2009 at 4:17 PM
Filed under: Acquisitions | Deal International | Information Technology
Tagged: Satyam , Spice Communications , Spice Group

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India's Spice Group Inc. is offering about 20 billion rupees ($408 million) for a controlling stake in IT outsourcer Satyam Computer Services Ltd., which lost four directors earlier in this month after its founder admitted that Satyam's balance sheet was inflated by more than $1 billion, devaluing -- by about 70% -- an otherwise attractive company.

Earlier in the week, Satyam hired Goldman, Sachs & Co. and Avendus to advise it on strategic options. As Bloomberg notes, the move was in response to Larsen, the nation's biggest engineering company, tripling its stake in Satyam and because of interest from other buyers.

Also, besides Satyam's books, execs at Spice were baffled by a "suspicious" spike in the shares of Spice Communications by more than 100%. - Baz Hiralal

Go to the Spice story
Also see: Satyam's search for truth
               Satyam's sting


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