SEBI to amend open offer rules; Satyam suitors may benefit

SEBI to amend open offer rules; Satyam suitors may benefit
Mumbai, Feb 2 (PTI) Satyam Computer's potential suitor may get to control the IT company at an affordable price, with market regulator SEBI today saying it would amend regulations governing open offer to ensure transparent pricing.The SEBI move comes on a request from Satyam board to relax the norm of 26-week average price to make an open offer."It was decided to appropriately amend the regulations to enable a transparent process for arriving at the price for such acquisition," SEBI Chairman C B Bhave told reporters here after the board meeting.The amendments will be made not only for the Satyam-case, but for all similar situations that may arise in the future, he said.The board recognises that the issue needs to be dealt with in a general context and not as a specific case, Bhave said, referring to the Satyam request.Though Bhave declined to give any timeframe for the amendments in pricing rule, he said: "We are aware about the urgency of the situation." Engineering major Larsen & Toubro has increased its stake in Satyam to over 12 per cent. If it crosses 15 per cent, the company would have to make an open offer to purchase another 20 per cent from the market.Among the other decisions taken today, SEBI made it mandatory for listed companies to declare dividend on per share basis instead of percentage basis followed at present.Besides, the regulator has reduced the timeline for the completion of bonus issue to 15 days if the shareholder approval is not required and to 60 days where the approval is required. At present, the timeline for this procedure is six months. PTI