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Satyam mulls equity offer to partners

Leading Indian software firm Satyam Computer Services is considering offering equity equivalent to two per cent of its outstanding equity to strategic partners and customers to help build its business.

The company's notice to shareholders ahead of its annual general meeting on June 29 says it plans to place this equity privately, as equity shares or convertible bonds, worth $20 million or upto two per cent of its equity, whichever is higher.

"To add strength to its expanding business operations and to exploit business opportunities by way of joint ventures, mergers, acquisitions and strategic alliances, your company is contemplating further issue of securities," it said.

Satyam raised $161.9 million through an offering of American Depositary Receipts last month and listed on the New York Stock Exchange. The funds raised will be used to retire some part of its debt, for acquisitions and for expansion.

Satyam's ADSs closed 1.79 per cent down at $10.41 at the NYSE on Thursday.

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