Satyam calls off foreign deal

BANGALORE: Hyderabad-based Satyam Computer Services Ltd.

has called off its $100 million foreign equity deal following the emergence of problems

during detailed interactions with foreign investors. A combination of factors, including

the price and timing of the issues and the structure of the deal led to the decision.

The company had planned to raise fresh equity to retire

debt worth Rs 250 crore. However, Jardine Fleming, bankers to the issue along with Satyam

have now called off the deal at the last moment.

The company is said to have met many international

investors, based on the investor interactions and the timing of the fund-raising plan, the

company in consultation with Jardine Fleming, decided not to pursue the current plan

keeping the best interests of the company and investors in mind. Sources said that the

deal ran into trouble because of its structure.

The Satyam Computer scrip reacted sharply on the stock

market yesterday, falling 7.58 per cent on the NSE to Rs 1,726.10 from the previous close

of Rs 1,867.60. The scrip fell from Rs 1871 to Rs 1732 on the BSE. Satyam was planning to

follow up the equity deal with an American Depository Receipts (ADRs) issue in fiscal

2000-01. Sources said that, the company would go ahead with its ADR issue.