Distressed IT firm Satyam Computer Services [Get Quote] on Wednesday said it aims to conduct a public auction for induction of a strategic investor in the company and sought the Company Law Board's approval for the same.

While warning that many key clients and employees have threatened to quit the company due to its bad financial position, the government-appointed board of Satyam Computer also sought CLB's nod for allotment of preferential equity and increasing its authorised capital to Rs 120 crore (Rs 1.2 billion).

The petition has been admitted by CLB, which would continue its hearing on Thursday.

In its petition, Satyam has asked CLB to permit it 'to devise a plan which provides for transparent, open and competitive process for continued operation' of the company in the interest of its all shareholders.

The company would also consider making 'preferential allotment of equity shares or other securities for financing' its operating and capital costs and other financial needs without holding any annual general meeting, the petition said.