Thursday, February 19, 2009

CLB allows auction to find Satyam buyer

NEW DELHI: The Company Law Board on Thursday came to the rescue of cash-starved Satyam Computer Services and allowed the IT firm to increase its
authorised share capital.

The CLB added Satyam could issue preferential shares "at par or at a premium".

CLB chairman S Balasubramanian allowed the company to increase its authorised share capital to Rs 280 crore (comprising 140 crore equity shares of Rs two each) from the current Rs 160 crore.

The CLB asked the company to use the share through a preferential allotment and said the strategic investor should be found through a "transparent, open and competitive process."

Balasubramanian said the price bid auction process should be overseen by a retired judge of the Supreme Court/ a former CJI of India.


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