If all goes well, a new management will take control of fraud-hit Satyam Computer Services in the next six to eight weeks. This is what the top management of the company told staffers in a communication on Wednesday.

The company's board is meeting here today to finalise the terms for bidding.

"The company has made firm and steady progress by securing the Company Law Board's order, which exempts the company from obtaining approval of shareholders to increase the authorised share capital," the communication said.

"It is likely that the answer to who is the strategic investor and further details surrounding this will emerge from a competitive, fair and transparent method in 6-8 weeks," it added.

Sources said that the board is planning to offer 51% to the strategic investor, including the option for an open offer.

This would mean that the investor would be given 31% of the equity on preferential basis and the bidder would go for an open offer for getting the remaining 20%.

"Some investors have expressed reservations on offering less than 51% through the preferential allotment. But, the board is worried about the financial implications for the bidder to acquire another 20%, which would mean a total stake of 71%," the source said.

Instead, the board is likely to offer 31% initially and allow the bidder to go for an open offer to acquire another 20%. In case, there is no response from the investors for the open offer, the board might offer another 20% through the preferential allotment in the second phase, he said.

K V Ramana DNA