New York, June 11: Barely 48 hours before Mahindra
group firm`s open offer for Satyam, the government-appointed
board has decided against endorsing it saying this could be
construed as a "negative statement" about fundamentals.
"The board believes that making a recommendation
supporting the open public offer would be tantamount to
recommending the shareholders sell their holding in Satyam,"
Chairman Kiran Karnik said in a letter to the company`s
domestic and overseas shareholders.
The letter is part of a regulatory filing by the
beleagueard IT firm with the US market regulator SEC last
night.
Indian conglomerate Mahindra and Mahindra`s IT arm Tech
Mahindra, which last month acquired 31 per cent stake in the
scam-ridden Satyam for Rs 1,756 crore, will begin accepting
shares from the public shareholders from tomorrow under its
over Rs 1,100 crore open offer for additional 20 per cent
stake.
Bureau Report
