Satyam is not a commodity to be sold through e-auction: L&T

Thursday, 05 February , 2009, 08:46
Last Updated: Thursday, 05 February , 2009, 10:13

 

Hyderabad: Countering the suggestion made by B.K. Modi, Chairman of Spice Corp, a senior official of Larsen and Toubro Ltd has said Satyam Computer Services is not a commodity for a suitable buyer to be determined through e-auction.

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"E-auction is not a way of acquiring Satyam. It is not a commodity, a vegetable or an entity like that. On the other hand it needs to be looked into very carefully and that is why we cannot go by e-auction," J.P. Nayak, Whole-Time Director and President (Operations) of L&T, told reporters on the sidelines of seminar here on Wednesday.

He said e-auction can be used only for a standard commodity and Satyam was not a standard commodity.

Modi last week said the auction should be via electronic means (e-auction) to make the process, quicker, open and transparent to everyone and it should be standardised with a minimum bid of around Rs 1,000 crore.

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Nayak said the Satyam board on Wednesday had enough expertise available to them and does not need any outside suggestions.

"L&T is not just an infrastructure company but has a diversified portfolio. We are also in manufacturing and also in services a wholly owned subsidiary, L&T Infotech. So it is not a strange business for us if we acquire Satyam," he said.

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No SEBI suggestions

According to Nayak, market regulator SEBI has also not come out with any concrete suggestions on the open offer rules.

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"So we are waiting for the change from SEBI. But more importantly, it is not just SEBI, we also have to take into account what the Satyam Board will decide. SEBI is just the facilitating agency but ultimately what will happen in the company will be decided by the Satyam Board," he added.

"Bhave also made it clear that they will take a look at the entire open offer norms instead of looking at issues only relating to Satyam. As and when SEBI comes out with the regulations, then the Satyam Board will make up its mind as to how they want to go forward," he said.

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Nayak said any action by anybody who is interested in the company will depend on what the Board wants to do.