Satyam to Weigh Offers; CEO Sees No Timeline for a Possible Sale; Keeping an Eye on Cash

Satyam Computer Services Ltd.'s begun considering offers from suitors looking to buy the fraud-riddled Indian outsourcer, said new CEO A.S. Murty. The company's board, appointed by the Indian government, has been approached by "numerous entities," Mr. Murty said in written responses to questions from The Wall Street Journal. Indian engineering-and-construction firm Larsen & Toubro Ltd., which holds a 12% stake in Satyam, expressed interest in buying the company, as have HCL Technologies Ltd., the Hinduja Group, Tech Mahindra Ltd. & Spice Group. A. "There is no timeline that we can commit to at this stage," Mr. Murty said. A sale wouldn't need the explicit approval of the government, he added. The outsourcer's former chairman, B. Ramalinga Raju, admitted last month to cooking the books for several years, by methods including creation of fictitious cash balances of more than $1 B. The board settled on Mr. Murty, a longtime Satyam executive, as CEO after a monthlong search. He has spent 15 years with the company, most recently as its chief delivery officer, until taking the helm in early February. The biggest hurdle facing Murty & the new board may be getting enough money to keep Satyam running until a sale can be consummated. Its actual finances are still being analyzed after Mr. Raju's confession, and the company had some difficulties meeting payroll last month. Mr. Murty said Satyam has secured a loan of $130 M to help its financial position in the near term. "At first glance, it appears we should be able to secure our operations with monthly collections and prudent financial management," he said. Satyam has hired KMPG and Deloitte to help in its internal investigation into the fraud & to establish the real financial situation of the Hyderabad-based company. The fraud at the company's also being investigated by several Indian authorities, including Andhra Pradesh state police, India's markets regulator and the country's top fraud-investigation agency. The U.S. Securities and Exchange Commission also has sent officials to India. Satyam has American depositary receipts listed on the NYSE. In the wake of Mr. Raju's confession, Satyam's faced criticism for having an opaque and highly centralized management structure that some say allowed fraud to be concealed for years. Satyam's business units "had a very limited overview of the consolidated organizational results," Mr. Murty said.