The mystery over the sale process of fraud-hit Satyam Computer continues to keep bidders guessing as Thursday's meeting of the company's board remained inconclusive on the key bidding terms.

Sources said the process would take another 10 days to be finalised.

Though the company has not made an official announcement on the outcome of the board meeting, sources said the board is keen on consulting the market regulator before taking any key decision on the terms of the bidding.

"The quantum of preferential issue and the base price for the shares to be offered are the key issues that are taking most of the board's time. There are different views on these two issues and it would be the regulator that would break the jinx," the source said.

In fact, the quantum of preferential issue itself is emerging to be a tricky issue with the board reportedly preferring the option of giving out 31% to the bidder in the preferential route and allowing him to raise another 20% through an open offer.

"There are apprehensions about the response from the investors for selling their shares through an open offer. Any price that would be offered by the bidder would definitely be less than the average price of the shares with any investor.

This is not likely to give any encouraging response to the offer. But, there is an option for the board to first wait for the response to the open offer and then make yet another preferential allotment to the bidder to fill the gap (for taking the total holding to 51%)," the source explained.

Similarly, the base price too would be a tricky issue, with the valuations of the company remaining a mystery.

"There are no financials available for anyone to assess the real value of the company. So, the base price would be linked to the assets, receivables, numbers of clients and other such issues.

However, the contingent liabilities in the form of class suits and other legal issues like Upaid would have their own share to discount the positives in arriving at a valuation for the company. In this backdrop, a base price for the offer is a difficult issue and challengeable too," the source said.

At Thursday's meeting, sources said, the board has more or less finalised the modalities for auctioning the company.

The board would wait for the market regulator's approval to these modalities before taking the process forward. Though there are "several" applicants, the board is vetting each of them particularly on their abilities to absorb the impending financial burden and ability to steer through the legal hurdles and pending law suits.

K V Ramana/ DNA-Daily News & Analysis Source: 3D Syndication