Open offer not to have board's stamp

“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 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.

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 Friday under its over Rs 1,100 crore open offer for additional 20 per cent stake.  Karnik further said “the board is concerned that this (recommending the offer) might be construed as negative statement regarding the fundamentals of and outlook for Satyam, which could be misleading in light of limited financial information that is available due to restated, audited financial statements of Satyam since quarter ended June 30, 2000 being unavailable at this time.”

“Shareholders of Satyam are urged to carefully review all the information” in documents such as letter of offer, he noted.

Under the offer, shares would be purchased at a price of Rs 58 a share.

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