20% open offer for Satyam to be announced on Tuesday

The first official interaction between the Satyam board and Tech Mahindra management, post the deal, has taken place today. The boards have discussed a transition plan. Kiran Karnik, the Chairman of the government appointed Satyam board, said Tech Mahindra has completed almost all formalities for the buy, and has deposited Rs 2,910 crore in escrow accounts.

On layoffs, Karnik said one cannot say anything on layoffs now. "The list of key 100 employees has been given to Tech Mahindra. No decision yet has been taken on ex-interim CEO Ram Mynampati."

Deepak Parekh, Chairman, Satyam, said present Satyam CEO AS Murty would continue in his current position.

Tech Mahindra’s management said the current Satyam leadership would continue and added that it is far too early to talk about employee rationalisation. "Satyam will operate as a standalone unit. We will take action on employee rationalisation if needed and will look at campus offers after the Satyam take-over."

Parekh said 20% open offer will be announced on Tuesday. "More financial details will be revealed in the open offer document. The restatement of Satyam’s accounts is still going on."

Tech Mahindra, Karnik said, will appoint up to four members on Satyam board. To this the Tech Mahindra management added that the company would focus on naming CFO after getting preferential allotment. The priority for Satyam is on retaining and winning back clients, retain key staff, and win new deals, it said.

According to Karnik, minor German, US regulatory issues are being worked on. However, Tech Mahindra stated it has not got details of Satyam's legal issues yet.

Tech Mahindra said all resources for Satyam buy have been raised within 72 hours from banking sources. "We borrowed from non-banking financial companies for the Satyam buy. Partial funding for the Satyam buy would be done via special purpose vehicles."

British Telecom has fully endorsed this deal, it added.