Satyam Computer Services Ltd. (fka SAYCY)

[califax]

L&T shares weak on likely Satyam open offer

... in case of an open offer, the engineering and construction major would have to offer Satyam shareholders almost six times the software company's current market price.

http://economictimes.indiatimes.com/articleshow/4036409.cms

L&T shares weak on likely Satyam open offer
27 Jan 2009, 1423 hrs IST, ET Bureau

MUMBAI: Shares of Larsen & Toubro were weak in a strong market after the company indicated it would hike its stake in Satyam Computer beyond
15%, a move that will trigger an open offer.

L&T investors are concerned that, in case of an open offer, the engineering and construction major would have to offer Satyam shareholders almost six times the software company's current market price.

As per the existing norms, if an acquirer buys more than 15% in a listed entity, he has to mandatorily make an open offer to buy another 20% from smaller shareholders.

Though a section of the market is betting authorities may relax the open offer norms in L&T's case, given the enthusiasm shown by the government to end the matter, it is still not clear to what extent would the rules be relaxed.

At 1:28 pm, L&T shares were down 1.1% at Rs633.85. Satyam shares up 20% at Rs46.50.